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

TechZone360 Contributor

SHARE THIS ARTICLE
Related Articles

Coding and Invention Made Fun

By: Special Guest    10/12/2018

SAM is a series of kits that integrates hardware and software with the Internet. Combining wireless building blocks composed of sensors and actors con…

Read More

Facebook Marketplace Now Leverages AI

By: Paula Bernier    10/3/2018

Artificial intelligence is changing the way businesses interact with customers. Facebook's announcement this week is just another example of how this …

Read More

Oct. 17 Webinar to Address Apache Spark Benefits, Tools

By: Paula Bernier    10/2/2018

In the upcoming webinar "Apache Spark: The New Enterprise Backbone for ETL, Batch and Real-time Streaming," industry experts will offer details on clo…

Read More

It's Black and White: Cybercriminals Are Spending 10x More Than Enterprises to Control, Disrupt and Steal

By: Cynthia S. Artin    9/26/2018

In a stunning new report by Carbon Black, "Hacking, Escalating Attacks and The Role of Threat Hunting" the company revealed that 92% of UK companies s…

Read More

6 Challenges of 5G, and the 9 Pillars of Assurance Strategy

By: Special Guest    9/17/2018

To make 5G possible, everything will change. The 5G network will involve new antennas and chipsets, new architectures, new KPIs, new vendors, cloud di…

Read More