AUSTIN, Texas–With a potential fine of as much as $50 million, the digital bank and fintech Green Dot received a proposed consent order from the Federal Reserve that according to the company relates “principally to various aspects of compliance risk management, including consumer compliance and compliance with anti-money laundering regulations.”
Green Dot is the world's largest prepaid debit card company by market capitalization, and is also a payment platform used by Apple Cash, Uber, and Intuit.
According to Green Dot, in publishing its Q4 and full year financial results for 2023, the company said the matters addressed in the proposed Fed consent order “relate to activities and practices that commenced prior to the company’s chief executive officer transition in 2020.”
What’s in Order
Green Dot said the consent order includes “proposals for civil money penalties related to these issues” and it is “still in discussions with the Federal Reserve Board regarding these proposals.”
Green Dot reported it has “accrued as part of its GAAP financial results an estimated liability of $20 million related to the proposed consent order during the quarter ended Dec. 31, 2023,” adding that “the estimate of the aggregate range of reasonably possible losses” could be up to $50 million.
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