Shares of Western Union fell more than 3 percent on Thursday after it agreed to pay $586 million to settle allegations that it failed to prevent criminals from using its service for money laundering and fraud.
On Thursday, the money-transfer company said it reached an agreement with the U.S. Justice Department and Federal Trade Commission. As a part of the agreement, the company will take actions to enhance its anti-money laundering programs.
The amount paid to regulators will be used to reimburse consumers who were victims of fraud from 2004 to 2012.
"We are committed to enhancing our compliance programs to prevent illicit activity on our network and protect customers who transfer money to friends, family and businesses," Western Union said in a statement.
With Thursday's losses, the stock is down more than 2 percent year to date.
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