Shares of Western Union Co. tumbled 3.1% in active afternoon trade Thursday, reversing earlier gains of as much as 1.3%, after the provider of money movement services admitted to money laundering and consumer fraud violations, and agreed to pay $586 million. Volume spiked to 11.3 million shares, nearly triple the full-day average of 3.9 million shares, according to FactSet. “In its agreement with the Justice Department, Western Union admits to criminal violations including willfully failing to maintain an effective anti-money laundering (AML) program and aiding and abetting wire fraud,” the Department of Justice said in a statement. The company said it also agreed to implement an anti-fraud program and enhanced compliance obligations. “Western Union owes a responsibility to American consumers to guard against fraud, but instead the company looked the other way, and its system facilitated scammers and rip-offs,” said Federal Trade Commission Chairwoman Edith Ramirez. The stock has run up 29% over the past 12 months, while the S&P 500 has gained 20%.
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