BISMARCK, N.D. – The North Dakota Department of Financial Institutions (DFI) has reached a final agreement with money transmitter Sigue Corp. for failing to fulfill its obligations to customers during its collapse last year.
The agreement with Sigue comes one year after financial regulatory agencies from 39 states, Puerto Rico and the District of Columbia ordered the company to cease engaging in any further money transmission activities due to its declining financial position. The company failed to complete multiple money orders and transmissions and to maintain adequate net worth and permissible investments to cover outstanding liabilities, both violations of state money transmission law.
The agreement requires Sigue Corp. and its owner, Guillermo de la Viña, to resolve Sigue’s failure to meet its outstanding liabilities. The agreement also contains provisions relating to GroupEx Financial Corp., a subsidiary of Sigue and a licensed money transmitter. Under the terms of the agreement, Sigue’s and GroupEx’s money transmitter licenses have been surrendered. Additionally, de la Viña has agreed to refrain from any position of management, control or employment of any money transmitter unless first approved by DFI.
The North Dakota Department of Financial Institutions is an executive branch agency overseen by Commissioner Lise Kruse. DFI is responsible for chartering and regulating state banks and credit unions, and for licensing and regulating 1,700 non-bank financial services companies, 183 of those being money transmitters.
A copy of the order can be found here.