Sigue Deferred Prosecution Agreement: A Breakdown
Sigue Corporation, a global money transfer business, recently entered into a deferred prosecution agreement with the United States Department of Justice (DOJ). The agreement includes a $15 million penalty and a commitment to implement enhanced compliance measures. Here`s a breakdown of what the Sigue deferred prosecution agreement entails.
What is a Deferred Prosecution Agreement?
A deferred prosecution agreement (DPA) is a legal agreement between a prosecutor and a defendant in which the defendant agrees to certain conditions in exchange for the prosecutor deferring criminal charges. Typically, these agreements require the defendant to cooperate with authorities, pay a fine, adopt certain compliance measures, and agree to certain restrictions.
Why did Sigue Enter into a Deferred Prosecution Agreement?
In January 2021, the DOJ announced that it had entered into a DPA with Sigue Corporation. The DOJ alleged that Sigue had violated the Bank Secrecy Act (BSA) by failing to maintain an effective anti-money laundering (AML) program and knowingly processing transactions for unregistered and unlicensed money transmitting businesses.
The DOJ also alleged that Sigue had willfully failed to file suspicious activity reports (SARs) and failed to properly train its employees on AML requirements. As part of the DPA, Sigue agreed to pay a $15 million penalty and implement enhanced compliance measures to prevent future violations.
What are the Terms of the Deferred Prosecution Agreement?
Under the terms of the DPA, Sigue Corporation agreed to:
1. Pay a $15 million penalty within 30 days of the agreement`s execution
2. Retain an independent compliance monitor for a period of two years to oversee and assess Sigue`s AML program
3. Implement enhanced compliance measures, including:
– Designating a compliance officer with AML responsibilities
– Conducting an annual third-party audit of its AML program
– Establishing procedures for filing SARs and implementing a SAR review committee
– Conducting annual AML training for all employees
What are the Implications of the Deferred Prosecution Agreement?
The Sigue deferred prosecution agreement is a significant development in the DOJ`s efforts to combat money laundering and illicit financial activity. By imposing a significant penalty and requiring the adoption of enhanced compliance measures, the DOJ is sending a strong message to other money transfer businesses that violations of the BSA and AML requirements will not be tolerated.
For Sigue Corporation, the DPA represents an opportunity to avoid criminal charges while still being held accountable for its conduct. By agreeing to the terms of the DPA, Sigue can avoid a lengthy and costly legal battle while working to strengthen its AML program and prevent future violations.
In conclusion, the Sigue deferred prosecution agreement is a significant development in the fight against money laundering and illicit financial activity. By imposing a significant penalty and requiring the adoption of enhanced compliance measures, the DOJ is sending a strong message to other companies that compliance with AML requirements is essential, and violations will not be tolerated.