Downtown Brooklyn

Dubai-based firm WSE to pay $9 million to settle money laundering charges

January 23, 2025 Brooklyn Eagle Staff
Eastern District of New York Federal Court in Brooklyn. Brooklyn Eagle photo by Rob Abruzzese
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DOWNTOWN BROOKLYN — DUBAI-BASED WALL STREET EXCHANGE (WSE) agreed to pay more than $9 million in fines and forfeitures to resolve a bank-fraud investigation into the firm’s violation of anti-money laundering rules, John J. Durham, newly-appointed Interim U.S. Attorney for the Eastern District of New York and Harry T. Chavis Jr. of the Internal Revenue Service announced Wednesday. 

WSE, a global money-exchange firm, admitted to making false statements to a U.S. financial institution concerning its adherence to anti-money laundering rules, including the compliance of its wholly-owned subsidiary, U.K.-based Wall Street Forex London Limited (Forex). Forex directors had been aware that several of its business clients were using the company’s services to engage in suspicious money laundering activities, having been informed of this by the company’s external consultant and at least one Forex employee, according to EDNY. These concerns had been communicated to one or more of WSE’s executives. U.K. regulators forced Forex to shut down its U.K. operations in 2016 after revoking the “fit and proper” status of all of the company’s directors. But WSE never informed the U.S. bank of this when the bank was conducting its annual due diligence review, instead falsely informing the bank that there had been no issues.

The Justice Department said it agreed to not prosecute the company based on a number of factors, including that Forex was no longer in operation; the crimes occurred under former WSE management; and that WSE has had no bank accounts in the United States since 2018. Management cooperation also played into the resolution.

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