DALLAS, March 16,
2022 /PRNewswire/ -- MoneyGram (NASDAQ: MGI) today
announced it has reached a final agreement to settle its previously
disclosed legacy enforcement matter with the New York Department of
Financial Services ("NYDFS") through a consent order (the
"agreement").
Pursuant to the agreement, MoneyGram will pay a civil monetary
penalty of $8.25 million to the NYDFS
and undertake various reporting obligations. This payment is
consistent with the estimated amount that MoneyGram previously
accrued in the fourth quarter of 2021.
In entering into the agreement, the NYDFS acknowledged that
there were several mitigating factors in respect of the agreement,
including that the company fully cooperated with NYDFS's
investigation including by reporting on the results of its internal
investigation on the matter, had voluntarily undertaken significant
enhancements to its compliance program and undertaken remediation
to prevent similar violations from occurring. Such measures and
enhancements include the previous termination of certain agents
following the spike in suspicious activity, the creation of new
compliance procedures to increase the authority of compliance
personnel within the company, the implementation of new limits on
and supervision of high-risk agents, and a substantial increase in
the resources allocated to compliance.
"We're pleased that this legacy matter from many years ago is
now behind us," said Alex Holmes,
MoneyGram's chairman and chief executive officer. "MoneyGram
continues to work diligently to prevent its systems from being used
to perpetrate any unlawful activity. Building an industry-leading
compliance program has for years been front and center of our
commitment to protecting our customers and communities."
Since 2012, the company has invested more than $800 million in compliance technology, agent
oversight and training programs. The company has had an
industry-leading compliance program and consumer verification
standards in place for years. Since March
2018, MoneyGram has verified consumer identification at the
point of sale for every money transfer transaction – and is the
only money transfer company to do so. Through these efforts,
MoneyGram has become an industry leader in consumer protection and
has achieved among the lowest consumer fraud rates in the
industry.
About MoneyGram International, Inc.
MoneyGram International, Inc. (NASDAQ: MGI), a global leader in
the evolution of digital P2P payments, delivers innovative
financial solutions to connect the world's communities. With a
purpose-driven strategy to mobilize the movement of money, a strong
culture of fintech innovation, and leading customer-centric
capabilities, MoneyGram has grown to serve over 150 million people
in the last five years. The Company leverages its modern, mobile,
and API-driven platform and collaborates with the world's top
brands to serve consumers through its direct-to-consumer digital
channel, global retail network, and embedded finance business for
enterprise customers. MoneyGram is also a leader in pioneering
cross-border payment innovation and blockchain-enabled settlement.
For more information, please visit ir.moneygram.com, follow
@MoneyGram on social media, and explore the website and mobile app
through moneygram.com.
CONTACTS
Investor Relations:
214-979-1400
InvestorRelations@moneygram.com
Media Relations:
Stephen Reiff
media@moneygram.com
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SOURCE MoneyGram