On October 25, the Connecticut Banking Commissioner has suspended a money transmitter’s license, citing several issues: inadequate KYC policies, multiple consumer complaints about fraudulent activity, and insufficient capital levels. A 2023 multistate examination revealed that the money transmitter failed to file federally-required transaction reports and did not collect necessary identifying numbers, such as social security numbers, for high-value transactions. The Commissioner has stated that, pending the money transmitter’s right to request a hearing, he plans to revoke the money transmitter’s license and impose a civil money penalty of an indeterminate amount.
