Recent settlement demonstrates DOJ’s focus on foreign entities misrepresenting anti-money laundering compliance

The US Department of Justice (DOJ) has announced that Wall Street Exchange (WSE), a Dubai-based money exchange service provider, entered into a non-prosecution agreement (NPA) and agreed to pay more than $9.2 million to resolve a bank fraud investigation related to false statements made to a US financial institution regarding anti-money laundering (AML) compliance more than seven years ago.

According to the NPA, which was announced on January 22, 2025, WSE and its UK-based subsidiary, Wall Street Forex London Limited (Forex), failed to disclose to their US bank that Forex was subject to regulatory action by US authorities for AML violations and that Forex was forced to cease its operations in the US as a result. WSE and Forex also misrepresented that Forex's agents, rather than Forex itself, were under investigation for AML issues. By repeatedly concealing the regulatory action and reason it had ceased operations in the US, WSE and Forex were able to maintain their banking relationships with the US bank until 2018, when the bank terminated them.

Under the terms of the NPA, WSE admitted responsibility under US law for the past acts of its former officers, directors, employees, and agents that constituted bank fraud, and agreed to pay a criminal fine of $3.92 million and forfeiture of $5.33 million. The NPA also requires WSE to continue to cooperate with and provide information to the DOJ for the term of the agreement. The DOJ considered several factors in reaching this resolution, including the nature and seriousness of the offense, WSE's remedial measures to enhance its AML program, WSE's lack of a criminal history in the US, and WSE's cooperation with the DOJ.

What foreign companies are encouraged to keep in mind

The WSE settlement is the latest example of the DOJ's enforcement of AML laws and regulations, which aim to prevent the use of the US financial system for illicit purposes, such as money laundering, terrorist financing, tax evasion, and fraud. AML laws and regulations impose various obligations on financial institutions and other entities that conduct transactions in US dollars, such as maintaining effective AML programs, conducting customer due diligence, reporting suspicious activity, and complying with sanctions and other restrictions. The DOJ has the authority to investigate and prosecute violations of AML laws and regulations, and to impose criminal and civil penalties, forfeiture, and other sanctions.

The WSE settlement signals that the DOJ will continue to pursue foreign actors that abuse the US financial system and expose US banks to regulatory and reputational risks, even if the conduct occurred long ago or the impact was limited. This is particularly relevant when considering the foreign policy changes of the new administration with respect to sanctions, tariffs, and export controls. The DOJ has demonstrated its willingness to use its extraterritorial jurisdiction and leverage its cooperation with foreign authorities to hold accountable entities that violate US AML laws and regulations, regardless of their location or size.

The DOJ has powerful tools to accomplish this. For example, after the 2022 invasion of Ukraine by Russia, the Treasury Department’s Office of Foreign Assets Control (OFAC) entered into a recently-published memorandum of understanding with the UK’s Office of Foreign Sanctions Implementation of His Majesty’s Treasury (OFSI) to cooperate in the administration and enforcement of each country’s economic and trade sanctions authorities. Additionally, the 2004 Mutual Legal Assistance Treaty between the UK and the US has a specific money laundering provision pursuant to which each country promises assistance with respect to “money laundering and terrorist activity.”

The DOJ has also shown flexibility in resolving AML cases based on the facts and circumstances of each case, while considering the extent of cooperation and remediation efforts by the entities under investigation.

What can foreign companies take away from this settlement?

The WSE settlement highlights the importance of AML compliance for entities that conduct transactions in US dollars or have banking relationships with US financial institutions. Entities are encouraged to:

• Review their AML policies and procedures and ensure that they are consistent with the applicable laws and regulations in the jurisdictions where they operate


• Conduct regular risk assessments and audits of their AML programs and address any gaps or deficiencies


• Train their employees and agents on AML compliance and reporting obligations and monitor their adherence to the policies and procedures


• Disclose any material information or issues regarding their AML compliance or regulatory status to their US banks and other stakeholders, and


• Determine after consulting legal counsel whether it is advisable to cooperate with any inquiries or investigations by the DOJ or other authorities.

For more information

If you have any questions about this action or developing a risk-based AML program, please contact the authors, your DLA Piper relationship attorney, or any member of DLA Piper’s White Collar, National Security and Global Trade, or Investment Funds practices.