Moneygram receives injunction to take remedial action

Moneygram International SPRL is a foreign payment institution that conducts business in Sweden through agents that carry out money remittances. In conjunction with an investigation into the institution's work to combat money laundering and terrorist financing, Finansinspektionen identified deficiencies in the institution's general risk assessment.

Moneygram has not assessed the risks associated with its cash transactions. The institution's risk assessment also does not contain an analysis of its customers and an assessment of the risks associated with these customers. Furthermore, the institution has not assessed the risk associated with its use of agents as a distribution channel.

Moneygram has said that it will resolve the deficiencies but has not explained how or when; instead, it has only vaguely referred to resolving some of the identified deficiencies during the fourth quarter of this year. Given these conditions, Finansinspektionen cannot anticipate that the deficiencies will be resolved.

Finansinspektionen is therefore issuing Moneygram an injunction that it must resolve no later than 30 December 2022 the deficiencies that FI identified and update the institution's general risk assessment. MoneyGram must also report in writing no later than 31 January 2021 that it has implemented the measures as ordered by FI and how this has resulted in compliance with the injunction.

FI also investigated other parts of Moneygram's work to combat money laundering and terrorist financing. Here, the institution took measures during the course of the investigation or presented action plans that FI can approve. Therefore, FI sees no cause for issuing an injunction in these areas.