Illinois Officials Issue Cease and Desist Order Against Square

By

Square – the mobile payments company – was the subject of a cease and desist order from the Illinois Department of Financial & Professional Regulation.

The order means that the company has to stop “offering or providing money transmission services” in Illinois. The company also has to show documents, records and other statements for Illinois consumers, related to the transmission of money made to or from Illinois consumers, and independent reviews of Square’s anti-money laundering program. Also, Square is liable to the state for $1,000 a violation.

TechCrunch says the order relates to an Illinois law known as the Transmitters of Money Act.

“Transmitting money’ means the transmission of money by any means, including transmissions to or from locations within the United States or to and from locations outside of the United States by payment instrument, facsimile or electronic transfer, or otherwise, and includes bill payment services,” the order explained.

“No person may engage in this State in the business of selling or issuing payment instruments, transmitting money, or exchanging, for compensation, payment instruments or money of the United States government or a foreign government to or from money of another government without first obtaining a license under this Act.”

Therefore, it appears that Square needs a license to transmit payments in the state, TechCrunch said, but it is unlikely Illinois operations will be shut down for Square. Violations of the act represent a Class 3 felony under state law.

Meanwhile, Square said in a statement, “We’ve been in close contact with the Illinois Division of Financial Institutions for several months and are addressing their concerns.”

One blogger, Thomas Noyes, who is the former head of Citi global channels said, “I completely disagree with IL regulators.” He was believed to be the first person to report on the order – based on his tweets.




Edited by Brooke Neuman
Get stories like this delivered straight to your inbox. [Free eNews Subscription]

TechZone360 Contributor

SHARE THIS ARTICLE
Related Articles

ChatGPT Isn't Really AI: Here's Why

By: Contributing Writer    4/17/2024

ChatGPT is the biggest talking point in the world of AI, but is it actually artificial intelligence? Click here to find out the truth behind ChatGPT.

Read More

Revolutionizing Home Energy Management: The Partnership of Hub Controls and Four Square/TRE

By: Reece Loftus    4/16/2024

Through a recently announced partnership with manufacturer Four Square/TRE, Hub Controls is set to redefine the landscape of home energy management in…

Read More

4 Benefits of Time Tracking Software for Small Businesses

By: Contributing Writer    4/16/2024

Time tracking is invaluable for every business's success. It ensures teams and time are well managed. While you can do manual time tracking, it's time…

Read More

How the Terraform Registry Helps DevOps Teams Increase Efficiency

By: Contributing Writer    4/16/2024

A key component to HashiCorp's Terraform infrastructure-as-code (IaC) ecosystem, the Terraform Registry made it to the news in late 2023 when changes …

Read More

Nightmares, No More: New CanineAlert Device for Service Dogs Helps Reduce PTSD for Owners, Particularly Veterans

By: Alex Passett    4/11/2024

Canine Companions, a nonprofit organization that transforms the lives of veterans (and others) suffering PTSD with vigilant service dogs, has debuted …

Read More