Evergreen Reporter

Dubai-based Wall Street Exchange (WSE) has agreed to a non-prosecution agreement (NPA) and will pay over $9 million to settle a bank fraud investigation. This resolution was announced by John J. Durham, the United States Attorney for the Eastern District of New York, and Harry T. Chavis, Jr., Special Agent in Charge of the Internal Revenue Service-Criminal Investigation, New York.

The investigation focused on false statements made by WSE to a U.S. financial institution about its anti-money laundering compliance, involving its subsidiary Wall Street Forex London Limited (Forex). As part of the agreement, WSE will pay a criminal monetary fine of $3,920,000 and forfeiture amounting to $5,326,648. The NPA also mandates WSE's continued cooperation with U.S. authorities.

United States Attorney Durham stated that "WSE admits that it is responsible under U.S. law for the past acts of its former officers," adding that his office is committed to protecting the integrity of U.S. banks from foreign abuse.

Special Agent Chavis highlighted that "WSE’s failure to inform the US bank of an open investigation in the UK left the bank vulnerable." He emphasized the importance of anti-money laundering compliance in safeguarding financial institutions.

Wall Street Exchange operates as a money exchange service provider headquartered in Dubai, UAE. Its subsidiary Forex was incorporated in 1992 in the United Kingdom but ceased operations there after HMRC revoked its directors' "fit and proper" status due to non-compliance with money laundering regulations.

Despite regulatory actions against Forex, WSE did not disclose negative findings regarding Forex’s compliance to Bank A between 2015 and 2018. This led Bank A to terminate its global banking relationships with WSE in September 2018.

The Justice Department's resolution with WSE considered factors such as remedial measures taken by WSE and its lack of a criminal history in the United States. The government’s case involved several legal entities including MLARS and was assisted by various attorneys and paralegals.

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