The $125 million payment is part of a comprehensive transaction that sheds light on allegations that moneyGram also violated a separate agreement with the Department of Justice in 2012. MoneyGram has signed a new seven-year super agency contract with Money Transfer International (MTI), a UK-based transfer and foreign exchange transaction. Mark Crowson, Regional Director for Northern Europe at MoneyGram, said: “We are pleased to be able to mark our first super agency agreement. This partnership is essential to accelerate our growth in a key region. MTI has a strong track background in the operation of the super-agency model and we look forward to the rapid deployment of the network that MTI will provide. DALLAS, November 5, 2019 /PRNewswire/ — MoneyGram International, Inc. (NASDAQ: MGI), a global provider of innovative money transfer services, has already announced that it has extended its agreement with Walmart to continue offering money transfer, “by” White-Label Walmart2 MoneyWorld Transfer, Bill Payment and Money Order Services until 2021. With this new super-agency agreement, MTI will lead the acquisition and management of new MoneyGram sub-agents in Denmark, Finland, Norway and Sweden. The new sub-agents introduced through MTI will complement MoneyGram`s existing agent relationships in the Nordic countries, where it has been established since 2004. Additional information on factors that could cause actual results to differ materially from those of forward-looking statements appear in MONEYGRAM`s submissions from time to time. MoneyGram submissions can be received through MoneyGram, The MoneyGram website ir.moneygram.com or the SEC`s electronic data analysis and analysis system www.sec.gov. MoneyGram undertakes no commitment to publicly update or revise any forward-looking statements.
In addition to the cash payment, MoneyGram has accepted an expanded and modified order, which was the successor to the 2009 order and will apply to remittances worldwide. The amended order requires, among other things, that the company block the transfer of funds from known fraudsters and provide refunds to victims of fraud if its agents do not comply with the guidelines and procedures in force. In addition, the amended decision includes enhanced due diligence, investigation and discipline requirements. The Commission`s vote on the authorization of staff to submit the planned discharge order and the change in the standing order was 5-0. The FTC submitted the decision to the U.S. District Court for the Northern District of Illinois, Eastern Division. NOTE: Agreed final orders have the force of the law, if the district court judge has approved and signed. In the third quarter of 2019, MoneyGram`s Walmart2World “Powered by” product accounted for approximately 9% of the company`s total sales. At present, it is difficult to predict the impact of this new Walmart marketplace on current transaction volume and profit margins. Any impact on financial results will depend on a number of factors, including the date of introduction to the market, how the products will be placed at the point of sale and the aggressiveness of the competition to tout their currencies. The FTC also claims that moneyGram`s computerized surveillance system, which was designed to prevent known fraudsters from using its service, was down in 2015 and 2016 for an 18-month period. During this period, MoneyGram was unable to block individuals whose company knew or should have known they were using its service for fraud or money transfers induced by fraud.
MoneyGram `powered by` White-Label Walmart2World Money Transfer to become part of the wider MoneyGram Marketplace is a global leader in omnichannel money transfer and payment services that enables friends and family to send affordable, reliable and convenient money for the daily needs of life in more than 200 countries and territories.