Action on Western Union Financial Services Inc.
Case Brief
By orders dated April 20, 2018, the Reserve Bank of India imposed monetary penalties on Western Union Financial Services Inc., USA and MoneyGram Payment Systems Inc., USA. The penalties were for non-compliance of regulatory guidelines and were imposed under Section 31 of the Payment and Settlement Systems Act, 2007 for compounding of contraventions.
RBI imposed monetary penalties on Western Union Financial Services Inc., USA and MoneyGram Payment Systems Inc., USA for non-compliance of regulatory guidelines. The penalties were imposed under Section 31 of the Payment and Settlement Systems Act, 2007 for compounding of the contraventions.
Severity Assessment
The action is a monetary penalty of ₹29,66,959, which falls above the ₹20 lakh threshold for severity 4.
Western Union Financial Services Inc. and MoneyGram Payment Systems Inc. are required to bear the respective monetary penalties imposed by RBI. The action is punitive and does not indicate a broader operating restriction beyond the fine itself.
Published as Western Union Financial Services Inc.
Published as MoneyGram Payment Systems Inc.
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