Brink's Global Services' Agreements with DOJ and FinCEN Explained
Brink's Global Services Reaches Key Agreements
Brink’s Global Services USA (BGS USA), a subsidiary of The Brink’s Company (NYSE: BCO), has recently achieved significant milestones by finalizing agreements with the U.S. Department of Justice (DOJ) and the Financial Crimes Enforcement Network (FinCEN). These resolutions, which aim to address prior investigations into historical currency shipments, underscore the company’s commitment to compliance.
Details of the Agreements
The agreements comprise a Non-Prosecution Agreement with the DOJ and a Consent Order for a civil monetary penalty involving FinCEN. As stipulated, BGS USA is required to pay a total of $42 million distributed over the next three years. Throughout the investigation process, Brink's demonstrated full cooperation, which played a pivotal role in reaching these resolutions.
Background of the Investigations
These agreements relate to specific cross-border currency shipments that occurred between 2018 and 2020. Importantly, there were no funds involved with the Federal Reserve or any federally regulated financial institutions. Brink's transparency during this period has helped illuminate their dedication to adhering to regulations.
Commitment to Compliance
Mark Eubanks, the president and CEO of Brink's, emphasized the importance of compliant operations in maintaining customer trust. After the DOJ investigation came to light in 2020, Brink's undertook an extensive internal review. As a result, they implemented numerous enhancements to their global Ethics & Compliance program.
Strengthening the Compliance Program
Over the last few years, with guidance and support from executive leadership, Brink’s has significantly bolstered its global compliance initiatives. Enhancements include the expansion of their Ethics & Compliance team and the improvement of their engagement and training programs. These proactive measures set Brink’s apart in the industry, aimed at better safeguarding their customers while elevating their global cash and valuables management services.
Financial Implications of the Settlements
Brink's plans to account for the settlement costs as special items in its 2024 financial statements. Importantly, these costs will be excluded from their non-GAAP results, meaning that they will not influence the financial guidance previously provided for the year. This decision reaffirms their commitment to financial transparency and strategic planning.
About The Brink’s Company
The Brink’s Company (NYSE: BCO) is globally recognized for providing cash and valuables management, digital retail solutions, and ATM managed services. With operations in 52 countries and services extending to more than 100 regions, Brink's serves a diverse clientele that includes financial institutions, retailers, government entities, jewelry businesses, and other commercial operations. For additional information, reach out at 804-289-9709.
Frequently Asked Questions
What agreements did Brink's Global Services reach?
Brink's Global Services reached a Non-Prosecution Agreement with the DOJ and a Consent Order with FinCEN regarding certain historical currency shipments.
How much will Brink's pay as a result of these agreements?
Brink's has agreed to pay a total of $42 million over a period of three years as part of the settlements.
What prompted the DOJ investigation?
The investigation was initiated based on historical cross-border currency shipments conducted by Brink's between 2018 and 2020.
Will the settlement amounts affect Brink’s financial guidance for 2024?
No, the settlement amounts will be treated as special items and excluded from non-GAAP results, ensuring they do not impact the financial guidance provided.
How has Brink's strengthened its compliance program?
Brink's has expanded its global Ethics & Compliance team and enhanced engagement and training initiatives to better align with compliance risks and protections.
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