MoneyGram to Pay $8.25M Fine in NYDFS Settlement

MoneyGram  announced Wednesday (March 16) that it has reached a final agreement to settle a legacy enforcement matter with the New York Department of Financial Services, a company release said, and will pay a penalty of $8.25 million.

“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.”

MoneyGram’s penalty is in line with the estimated amount the company accrued in the fourth quarter of 2021.

The NYDFS has also acknowledged, through entering into the agreement, that there had been “several mitigating factors” in the agreement, including that the company fully cooperated with the investigation and undertook various enhancements to its compliance voluntarily.

The measures, according to the release, include the termination previously of some agents after spikes in suspicious transactions. MoneyGram also created new compliance procedures and put new limits and supervision on “high-risk agents.”

Read more: MoneyGram Suspends Service in Russia

MoneyGram also was one of the many companies to quit offering services in Russia because of that country’s military action against Ukraine.

MoneyGram said its top priority was keeping employees safe.

The company said it had been in “close contact” with the effected colleagues. It also planned to increase its support for Save the Children, and has approved an emergency grant directed to the Ukrainian Relief Fund.