Brink's Global Services USA resolves investigations with DOJ and FinCEN, agreeing to pay $42 million over three years.
Quiver AI Summary
The Brink’s Company announced that its subsidiary, Brink’s Global Services USA, has resolved investigations by the U.S. Department of Justice and the Financial Crimes Enforcement Network related to historical cross-border currency shipments and compliance issues. As part of the resolution, Brink’s Global Services USA will pay a total of $42 million in penalties over three years and has entered into a Non-Prosecution Agreement with the DOJ and a Consent Order with FinCEN. The company emphasized its commitment to compliance and has previously strengthened its Ethics & Compliance program in response to the investigations. The settlement amounts will be recorded as special items in Brink’s financial statements for 2024 and will not affect the previously provided financial guidance.
Potential Positives
- BGS USA has reached resolutions with the DOJ and FinCEN, indicating a positive step in addressing compliance issues and moving forward.
- The agreements demonstrate Brink’s commitment to compliance and ethical operations, potentially enhancing its reputation in the industry.
- The implementation of enhancements to Brink’s global Ethics & Compliance program shows proactive measures taken to prevent future issues, reinforcing its position as a responsible industry leader.
- The settlement amounts will not impact Brink’s 2024 financial guidance, preserving investor confidence and financial stability.
Potential Negatives
- The company has agreed to pay a significant total of $42 million to resolve investigations by the DOJ and FinCEN, indicating serious compliance issues.
- Entering into a Non-Prosecution Agreement and a Consent Order Imposing Civil Monetary Penalty may suggest past legal vulnerabilities and regulatory scrutiny that could impact the company's reputation.
- Despite Brink's efforts to enhance its compliance program, the need to do so may indicate prior deficiencies in its operational practices that could undermine stakeholder confidence.
FAQ
What agreements did Brink's Global Services reach with the DOJ and FinCEN?
Brink's Global Services USA reached a Non-Prosecution Agreement with DOJ and a Consent Order with FinCEN to resolve investigations.
What is the total financial penalty Brink's agreed to pay?
Brink's agreed to pay a total of $42 million over three years as part of the settlement agreements.
What historical period do the currency shipment investigations cover?
The investigations cover currency shipments that occurred from 2018 through 2020.
How has Brink's improved its compliance program after these investigations?
Brink's has strengthened its global Ethics & Compliance program, expanding the team and enhancing training programs for better compliance.
Will the settlement amounts affect Brink's 2024 financial guidance?
No, the settlement amounts will be treated as special items and will not impact the previously provided 2024 guidance.
Disclaimer: This is an AI-generated summary of a press release distributed by GlobeNewswire. The model used to summarize this release may make mistakes. See the full release here.
$BCO Insider Trading Activity
$BCO insiders have traded $BCO stock on the open market 1 times in the past 6 months. Of those trades, 0 have been purchases and 1 have been sales.
Here’s a breakdown of recent trading of $BCO stock by insiders over the last 6 months:
- JAMES K PARKS (EVP) sold 4,000 shares for an estimated $386,040
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$BCO Hedge Fund Activity
We have seen 141 institutional investors add shares of $BCO stock to their portfolio, and 167 decrease their positions in their most recent quarter.
Here are some of the largest recent moves:
- SILVERCREST ASSET MANAGEMENT GROUP LLC removed 1,086,817 shares (-50.8%) from their portfolio in Q3 2024, for an estimated $125,679,517
- WASATCH ADVISORS LP added 512,865 shares (+inf%) to their portfolio in Q3 2024, for an estimated $59,307,708
- BALYASNY ASSET MANAGEMENT L.P. added 383,161 shares (+14535.7%) to their portfolio in Q3 2024, for an estimated $44,308,738
- FMR LLC removed 354,287 shares (-7.7%) from their portfolio in Q3 2024, for an estimated $40,969,748
- LSV ASSET MANAGEMENT added 280,334 shares (+35.0%) to their portfolio in Q3 2024, for an estimated $32,417,823
- FULLER & THALER ASSET MANAGEMENT, INC. removed 247,607 shares (-12.1%) from their portfolio in Q3 2024, for an estimated $28,633,273
- LAZARD ASSET MANAGEMENT LLC removed 167,378 shares (-83.6%) from their portfolio in Q3 2024, for an estimated $19,355,591
To track hedge funds' stock portfolios, check out Quiver Quantitative's institutional holdings dashboard.
Full Release
RICHMOND, Va., Feb. 06, 2025 (GLOBE NEWSWIRE) -- The Brink’s Company (NYSE:BCO) today announced that its subsidiary, Brink’s Global Services USA (BGS USA), has reached agreements with the U.S. Department of Justice (DOJ) and U.S. Treasury’s Financial Crimes Enforcement Network (FinCEN) to fully resolve previously disclosed investigations related to historical cross-border currency shipments and compliance with federal money-transmitting laws.
BGS USA has entered into a Non-Prosecution Agreement with DOJ and a Consent Order Imposing Civil Monetary Penalty with FinCEN. Under the terms of the agreements, BGS USA has agreed to pay a total of $42 million over three years. Brink’s fully cooperated throughout the investigations.
The resolutions are based on certain currency shipments that occurred from 2018 through 2020 and did not involve the movement of funds on behalf of the Federal Reserve or any federally regulated financial institutions.
“Maintaining compliant operations for our global community of customers is a fundamental principle of our business and our Company values,” said Mark Eubanks, Brink’s president and chief executive officer. “Upon learning of the DOJ investigation in 2020, we conducted our own thorough internal review and have since implemented further enhancements to our global Ethics & Compliance program, which were acknowledged by the DOJ in our agreement. As an industry leader, we are committed to continuous improvement and are always evolving our program to address changing compliance risks.”
Over the last several years, with support from executive leadership, Brink’s has strengthened its global Ethics & Compliance program, including expanding the global Ethics & Compliance team and enhancing its engagement and compliance training program. These compliance program enhancements uniquely position Brink’s within the industry to better protect customers and improve its global cash and valuables management services.
Brink’s intends to treat the settlement amounts, which will be reflected in its 2024 financial statements, as special items and exclude them from its non-GAAP results. As such, the settlement amounts will not impact the 2024 guidance previously provided.
About The Brink’s Company
The Brink’s Company (NYSE:BCO) is a leading global provider of cash and valuables management, digital retail solutions, and ATM managed services. Our customers include financial institutions, retailers, government agencies, mints, jewelers and other commercial operations. Our network of operations in 52 countries serves customers in more than 100 countries. For more information, please visit our website at www.Brink’s.com or call 804-289-9709.
Contact:
Investor Relations
804.289.9709
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