LITTLE ROCK, Ark.— The Arkansas Securities Department has ordered money transfer company Sigue Corp., of San Fernando, Calif., to cease activities in Arkansas due to the company’s deteriorating financial position.
Arkansas is among 39 states that joined a consent order with the company, which has offered or is in the process of offering to surrender all of its money transmission licenses, according to the order.
Puerto Rico and Washington D.C. also joined the order, Arkansas Business reported.
The Allegations
According to regulators, Sigue failed to complete multiple money orders and transmissions, as well as maintain adequate net worth and permissible investments to cover outstanding liabilities, both of which are violations of state money transmission laws. As of March 21, the company had about $4.9 million in outstanding transmission liabilities in the states involved in the consent order, Arkansas Business said.
The publication noted the company’s website says it’s no longer processing new money transfers, money orders, or bill payment transactions through agents, branches or its SiguePay mobile app. The website further states Sigue is “making every effort to refund those transactions that remain outstanding,” the report added.
What’s Required
The consent order requires the company to preserve and provide access to all books and records, including information on impacted customers.
States will use the company’s signed declarations to file bond claims on behalf of impacted customers. The state surety bond claim process is designed to help make impacted consumers whole, Arkansas Business said.
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