By the Division of Banks
COMMONWEALTH OF MASSACHUSETTS
COMMISSIONER OF BANKS
Docket No. 2014-004
In the Matter of
U.S. MONEY EXPRESS CO.
Foreign Transmittal Agency License # FT2893
WHEREAS, U.S. MONEY EXPRESS CO., Chicago, Illinois (U.S. Money Express or the Corporation), a licensed foreign transmittal agency under Massachusetts General Laws chapter 169 has been advised of its right to Notice and Hearing pursuant to General Laws chapter 169, section 13, and having waived those rights, entered into a STIPULATION AND CONSENT TO THE ISSUANCE OF A CONSENT ORDER (Consent Agreement) with representatives of the Division of Banks (Division) dated June 11, 2014, whereby, solely for the purpose of settling this matter, and without admitting any allegations or implications of fact or the existence of any violation of state or federal laws and regulations governing the conduct and operation of a foreign transmittal agency, U.S. Money Express agrees to the issuance of this CONSENT ORDER (Order) by the Commissioner of Banks (Commissioner);
WHEREAS, an examination of U.S. Money Express was conducted pursuant to General Laws chapter 169, section 10, as of March 15, 2013 to assess the Corporation’s level of compliance with applicable Massachusetts and federal statutes, rules, and regulations governing the conduct of those engaged in the business of a foreign transmittal agency in the Commonwealth; and
WHEREAS, the Report of Examination (the Report) issued pursuant to the Division’s examination of U.S. Money Express alleged non-compliance with applicable state statutes, rules, and regulations governing the conduct of those engaged in the business of foreign transmittal agency in the Commonwealth; and
WHEREAS, the parties now seek to resolve by mutual agreement, the matters identified in the Report.
NOW COME the parties in the above-captioned matter, the Division and U.S. Money Express, and stipulate and agree as follows:
- U.S. Money Express must immediately cease commingling operating funds with customers’ transmittal funds.
- Within thirty (30) days of the effective date of this Order, U.S. Money must establish, implement and maintain procedures to ensure that any client funds collected from Massachusetts consumers by the Corporation’s licensed locations are segregated from operating funds and maintained in a trust account maintained at a federally insured bank in accordance with the Division’s regulation 209 CMR 44.07 throughout the transmittal process. These procedures must include monthly reconciliation of escrow accounts.
- U.S. Money Express agrees to submit a payment in the amount of one thousand dollars ($1,000.00) in satisfaction of an administrative penalty collected in consideration of the fact that the Corporation commingled amounts collected from consumers with operating funds.
- U.S. Money Express must supplement its compliance management system to adequately incorporate and address requirements under Massachusetts law applicable to foreign transmittal requirements. This may be done either by incorporating Massachusetts-specific requirements into its existing compliance policies or procedures or by developing new policies and procedures that address these Massachusetts-specific requirements. U.S. Money Express must maintain an effective overall compliance management system with sufficient oversight by ownership and senior amanagement, including but not limited to adequate policies and procedures, internal monitoring, training and periodic independent testing.
- U.S. Money Express must address and correct all violations and deficiencies as specified in the Report.
- U.S. Money Express must comply with all laws and regulations applicable to its conducting the business of a Foreign Transmittal Agency, including, but not limited to, Massachusetts General Laws chapter 169, the Division’s regulation 209 CMR 44.00 et seq., and the Bank Secrecy Act (31 U.S.C. § 5311 et seq.) and its implementing regulation 31 CFR Chapter X.
- U.S. Money Express agrees to refrain from submitting any foreign transmittal agency license applications for any branch or agent office locations for a period of six (6) months from the effective date of this Order unless the Commissioner, in his sole discretion, agrees to review such an application earlier.
- On the thirtieth (30th) day after the end of each calendar quarter following the date of this Order, U.S. Money Express must furnish written progress reports to the Division, which must address and include the following:
- A description of the form, content, and manner of any actions taken to address each Section of this Order and the results thereof; and
- Written findings prepared by U.S. Money Express detailing a review of management’s and staff members’ adherence to the policies, programs, and procedures adopted pursuant to this Order and to applicable statutes, regulations, and rules, as well as a description of any operational changes implemented during such quarter which are intended to improve U.S. Money Express’ compliance condition in Massachusetts and the results thereof.
- The reporting requirement to the Division referenced in Section 7 of this Order shall remain in effect and shall not be amended or rescinded without the prior written modification, termination, or suspension of the applicable provision of this Order from the Commissioner.
- The provisions of this Order shall not limit, estop, or otherwise prevent the Division, or any other state agency or department, from taking any other action affecting U.S. Money Express, its successors or assigns, if U.S. Money Express fails to fully and promptly comply with the above provisions.
- Nothing in this Order shall be construed as permitting U.S. Money Express to violate any law, rule, regulation, or regulatory bulletin to which the Corporation is subject.
- In consideration of the foregoing provisions of this Order, the Division agrees not to pursue formal measures, relative to this matter, to suspend or revoke U.S. Money Express’ foreign transmittal agency license under Massachusetts General Laws chapter 169, section 12, while this Order is in effect.
- Failure to comply with the terms of this Order shall constitute grounds for license suspension and/or revocation, or other formal regulatory action pursuant to applicable provisions of the General Laws of the Commonwealth of Massachusetts.
- This Order shall become effective immediately upon the date of its issuance.
- The provisions of this Order shall be binding upon U.S. Money Express, its officers and directors, their successors and assigns, and those persons in active participation with it, directly or indirectly, acting individually or through any corporate or other entity.
- In accordance with the terms of the Consent Agreement entered by U.S. Money Express and the Commissioner, U.S. Money Express has waived all rights of appeal that it may have relative to this Order or any of its provisions.
- The provisions of this Order shall remain effective and enforceable except to the extent that, and until such time as, any provisions of this Order shall have been modified, terminated, suspended, or set aside by the Commissioner or upon an order of a court of competent jurisdiction.
- This Order and the Consent Agreement are the complete documents representing the resolution of this matter. There are no other agreements between the Division and U.S. Money Express.
BY ORDER AND DIRECTION OF THE COMMISSIONER OF BANKS.
Dated at Boston, Massachusetts, this 11th day of June, 2014
David J. Cotney
Commissioner of Banks
Commonwealth of Massachusetts
(Consent Order terminated on August 1, 2016)