On June 16, the New York attorney general settled a civil action against a remittance provider in a case dropped by the CFPB earlier this year, which as previously covered by InfoBytes, left the State of New York as the sole plaintiff. The remittance provider neither admitted nor denied the allegations, but agreed to comply with the CFPA, the Remittance Transfer Rule, and New York Executive Law § 63(12), while paying a civil money penalty of $250,000.
The court ordered the remittance provider to maintain and enforce policies ensuring compliance with federal and state laws related to remittance transfers, and to ensure its systems identify consumer complaints and notices of error covered by the Remittance Transfer Rule. For three years, the remittance provider must provide the attorney general with documents and information verifying compliance upon request.
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