Department of Financial Institutions enters into a Settlement Agreement with Continental Express Money Order Company, Inc.
San Francisco – Acting California Department of Financial Institutions (DFI) Commissioner Brian Yuen announced today that he has entered into a Settlement Agreement with Continental Express Money Order Company, Inc. (“Continental”), a licensed payment instrument issuer. Continental received a license from DFI on January 18, 1994, to engage in business as a payment instrument issuer pursuant to Financial Code Chapter 16 (Section 33000).
DFI and Continental mutually agreed to enter into the Settlement Agreement (“Agreement”) in recognition of their common goals to ensure safety and soundness and compliance with applicable laws, rules and regulations.
The Agreement was based on an investigation by DFI’s Examinations and Legal Divisions. Continental has paid $50,000 to the Department, and the Acting Commissioner has agreed to release Continental from any further liability resulting from alleged violations of California Financial Code Section 33567, related to Continental’s failure to maintain eligible securities in an amount adequate to secure its aggregate payment instruments issued.
DFI is responsible for licensing and/or chartering, examining, and otherwise supervising the operations of state-regulated financial institutions: banks, credit unions, industrial banks, savings associations, trust companies, offices of foreign banks, issuers of travelers checks and payment instruments (money orders), and transmitters of money abroad. The Department reports to Sunne Wright McPeak, Secretary of the Business, Transportation and Housing Agency and Governor Arnold Schwarzenegger.
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