Western Union is at the center of a preliminary European Union antitrust inquiry into allegations the company colluded with banks to drive rivals out of the multibillion dollar money-transfer market.
The EU began quizzing firms about the issue in recent weeks, according to two people familiar with the matter, who asked not to be named because the process is private.
The European Commission is examining claims that banks agreed to close accounts of some smaller money-transfer providers, citing concerns that money they deposited may be linked to drug-trafficking or terrorism, one of the people said. Without an account in Europe, smaller remittance firms can’t offer their services as the money transits through the banking system.
Western Union is “cooperating with the European Commission following a request for information on the company’s business in Europe,” the Englewood, Colorado-based company said in a statement. It’s “fully supportive of improving understanding of the money transfer sector within a broader competitive framework.”
Prominent fines, including a $1.9 billion money-laundering charge against HSBC Holdings Plc in 2012 and a $1.7 billion settlement in 2014 for JPMorgan Chase & Co. related to money-laundering controls, reinforced the perception of danger.
Full content: Reuters
Want more news? Subscribe to CPI’s free daily newsletter for more headlines and updates on antitrust developments around the world.
Featured News
Judge Mehta Questions Both Sides in Landmark Google Antitrust Case
May 2, 2024 by
CPI
FCC Urges Urgent Funding for Removal of Chinese Telecom Equipment from U.S. Networks
May 2, 2024 by
CPI
Former Pioneer CEO Facing Potential Criminal Charges For Colluding With OPEC
May 2, 2024 by
CPI
South Korea’s Antitrust Regulator Greenlights K-Pop Powerhouse Deal
May 2, 2024 by
CPI
Exxon’s Pioneer Purchase Approved, Former CEO Barred from Board
May 2, 2024 by
CPI
Antitrust Mix by CPI
Antitrust Chronicle® – Economics of Criminal Antitrust
Apr 19, 2024 by
CPI
Navigating Economic Expert Work in Criminal Antitrust Litigation
Apr 19, 2024 by
CPI
The Increased Importance of Economics in Cartel Cases
Apr 19, 2024 by
CPI
A Law and Economics Analysis of the Antitrust Treatment of Physician Collective Price Agreements
Apr 19, 2024 by
CPI
Information Exchange In Criminal Antitrust Cases: How Economic Testimony Can Tip The Scales
Apr 19, 2024 by
CPI