The US payment company has reached the above settlements with the Attorney’s Office for the Middle District of Pennsylvania (MDPA) and the Asset Forfeiture and Money Laundering Section of the Criminal Division of the Department of Justice (US DOJ).
According to the terms of the DPA, MDPA and US DOJ will not initiate any further action against the payment processor, if it complies with the conditions described in the agreement.
Apart from establishing an independent compliance monitoring system, the company has also agreed to provide $100m, which will be used to compensate victims of the consumer fraud scams perpetrated through MoneyGram agents.
Commenting on the issue, MoneyGram chairman and chief executive officer Pamela Patsley said, "The conduct described in the DPA’s statement of facts is unacceptable to MoneyGram and counter to everything we strive to stand for."
"Since 2009, we’ve created a new culture at the company and have taken numerous steps to enhance our global compliance and anti-fraud programs."
MoneyGram International delivers global money transfers, money orders and payment processing systems for financial institutions and retail customers.
