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Commonwealth Foreign Exchange, Inc.; 56 Pine Street, Suite 600; Providence, RI 02903
March 14, 2017
NOW COME the Parties and state as follows:
1) The State of Maine, Bureau of Consumer Credit Protection (?the Bureau?) administers the state?s ?Money Transmitters Act,? 32 M.R.S. Chapter 80-Subchapter 1, including its requirements for licensing.
2) Maine law requires that entities engaged in money transmission be licensed by the Bureau prior to providing such services; that the money transmitter demonstrate in the application for a license that it is financially sound and responsible and; that an investigation of the character and fitness of the provider must indicate the business will be operated honestly and fairly. The statute also requires the posting of a surety bond to protect consumers.
3) On November 26, 2016, Commonwealth Foreign Exchange, Inc., (hereinafter ?Commonwealth?), voluntarily submitted to the Bureau an application seeking licensure as a money transmitter in Maine. Information later submitted in support of the application voluntarily disclosed that Commonwealth was already conducting money transmission activity in Maine.
4) Commonwealth disclosed that it had completed 774 money transmissions from Maine in 2016 totaling $5,830,896.15.
5) At no time during 2016 was Commonwealth licensed as a money transmitter in Maine.
6) The application for money transmitter license indicates licensing is otherwise appropriate and Maine is willing to issue a money transmitter license to Commonwealth if the issue of Commonwealth?s prior money transmission activity in the State of Maine can be resolved. 7) The parties are entering into this Consent Order in order to economically and efficiently resolve the pending dispute regarding Commonwealth?s prior money transmission activity in the State of Maine. Notwithstanding any provisions of this Order to the contrary, Commonwealth neither admits nor denies the Bureau?s finding of fact and conclusions of law herein, and makes no admission of guilt with respect to the matters referred to herein.
NOW, THEREFORE, the parties agree to the following resolution:
1) Except as necessary to fulfill transactions on behalf of its current customers, and only until a money transmission license is issued to Commonwealth, Commonwealth agrees that it will not in the future engage in providing money transmission services to Maine individuals or entities unless and until Commonwealth is properly licensed with the Bureau.
2) Commonwealth shall pay an administrative fine of $2,000 to the Bureau to resolve this matter. The payment for the fine shall be made out to the ?Treasurer, State of Maine? and mailed to 35 State House Station, Augusta, ME 04333.
3) Commonwealth and the Bureau agree that this Consent Order settles all matters contained herein, and the Bureau agrees that it will not bring any further action against Commonwealth with respect to any alleged prior unlicensed money transmitter activity. However this Order shall not bar further action by the Bureau with respect to complaints received by the Bureau to the extent the complaint alleges actual damage to a user of the service, but the relief sought by the Bureau in such action shall be limited to redress of the complainant?s damages and actual costs of the Bureau in resolving any dispute. This agreement shall not limit in any way action the Bureau may take against Commonwealth for any violations of the terms of this Assurance or state law in the future.
4) Commonwealth hereby knowingly, willingly, voluntarily and irrevocably consents to the entry of this Order and agrees that it understands all of the terms and conditions contained herein. Commonwealth, by voluntarily entering into this Order, waives any right to a hearing or appeal concerning the terms, conditions and/or penalties set forth in this Order.
5) The Bureau will publish this Order on its website.
6) This Order contains the entire agreement between the Bureau and Commonwealth. There are no other terms, obligations, covenants, representations, statements, conditions, or otherwise, of any kind whatsoever concerning this Order. This Order may only be amended in a writing signed by the Bureau and Commonwealth.
7) This Order is entered into by the parties with full opportunity for legal advice from counsel.
8) Commonwealth acknowledges and agrees that this Order is only binding upon the Bureau and not any other local, state or federal agency, department or office regarding matters within this Order.
| Date: March 14, 2017 | /s/William N. Lund |
| William N. Lund | |
| Superintendent | |
| Bureau of Consumer Credit Protection |