MoneyGram International, Inc. (NYSE:MGI), a leading global payment services company, announced today that it has reached a settlement with the U.S. 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”) relating to the previously disclosed investigation of transactions involving certain of the Company’s U.S. and Canadian agents, as well as its fraud complaint data and consumer anti-fraud program, during the period from 2003 to early 2009. In connection with this settlement, the Company entered into a deferred prosecution agreement (“DPA”) with the MDPA and US DOJ dated as of November 8, 2012.
Under the terms of the DPA, no further action will be taken against MoneyGram by the MDPA and US DOJ if it meets the conditions set forth in the agreement. As part of the agreement, the Company has agreed to the appointment of an independent compliance monitor and a forfeiture of $100 million that will be available to victims of the consumer fraud scams perpetrated through MoneyGram agents. MoneyGram has previously disclosed in its annual reports and other public filings that it was in discussions with authorities concerning this investigation. As announced on July 26, 2012, MoneyGram made an accrual in the second quarter of 2012 for $30 million and as announced on November 9, 2012, the Company made an additional accrual in the third quarter of 2012 for $70 million related to this matter.
MoneyGram cooperated with the MDPA and US DOJ during this investigation. In considering the settlement agreement, the MDPA and US DOJ acknowledged MoneyGram’s cooperation, implementation and maintenance of remedial measures and undertakings to continue to enhance compliance beyond the enhancements already made.
“The conduct described in the DPA’s statement of facts is unacceptable to MoneyGram and counter to everything we strive to stand for,” said Pamela H. Patsley, chairman and chief executive officer at MoneyGram. “We take compliance very seriously at MoneyGram, and nothing angers us more than when our services are used to perpetrate illegal activity. 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.”