Moneygram Deferred Prosecution Agreement
The transactions led the company to violate its 2012 agreement on deferred criminal prosecutions (DPAs). Despite MoneyGram`s agreement for five-year surveillance – an unusually long period for corporate oversight – the Department of Justice said in 2018, regarding the extension of the CCA, which, in accordance with the joint application it and MoneyGram filed to extend and amend the CCA, DoJ said on Thursday that it would pursue the CCA and extend it by a 30-month period « under which the government would attempt to extend and amend the CCA. to end the charges if MoneyGram complied with the agreement. With respect to the agreements subject to judicial authorization, MoneyGram will amend and extend the initial CCA of November 9, 2012 by and between the company and the Department of Justice. The DPA is extended by 30 months. MoneyGram said it would also change its approval order with the FTC. Note: In a November 8 MoneyGram press release, Alex Holmes, President and CEO of MoneyGram, said that « we have taken significant steps to improve our compliance program and have resolved many of the issues mentioned in the agreements. » These reported milestones include investments of more than $100 million since 2012 in compliance technologies, officer monitoring and training programs; Implementing « new industry-leading consumer control standards, » which have prevented approximately $1.5 billion in fraudulent transactions; and the commitment of a « leading global consulting firm to support the company`s efforts to improve its compliance program. » « Over the past few years, we have taken significant steps to improve our compliance program and have resolved many of the issues identified in the agreements, » said Alex Holmes, President and CEO of MoneyGram. « Currently, our consumer fraud reports are at a seven-year low and less than 0.05 per cent or 5 basis points of all transactions made via MoneyGram systems are declared fraudulent. » 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. The company requested an extension of the due date and a reduction in the last payment of $US 55 million due under the deferred prosecution agreement, stating that since the conclusion of the previous amendment on February 25, « the circumstances have changed. » Today, following MoneyGram`s breach of the DPA, the government filed a motion to extend and amend all MoneyGram DPA conditions and improve MoneyGram`s compliance requirements in accordance with the DPA.