MoneyGram has agreed to pay a US$250,000 fine to resolve a lawsuit brought by New York state concerning its handling of remittance transfers.

The settlement comes two months after the US Consumer Financial Protection Bureau (CFPB) withdrew from the civil case.

According to Reuters, New York Attorney General Letitia James announced the agreement on June 16, stating it resolves claims that MoneyGram repeatedly violated a 2013 federal regulation intended to make it easier for individuals to send money abroad.

Remittance transfers allow individuals in the United States to send funds electronically to recipients in other countries.

In a lawsuit filed in April 2022, James accused MoneyGram of causing delays in fund delivery, failing to inform senders of transfer timelines, and inadequately addressing consumer complaints.

Under the terms of the settlement, which was filed in federal court in Manhattan, MoneyGram did not admit or deny any wrongdoing.

The company must also provide clearer disclosures regarding how it investigates errors and ensure that customers are not held responsible for them.

Dallas based MoneyGram was acquired in 2023 by private equity firm Madison Dearborn Partners.

“We are pleased to bring full closure to this legacy matter, which dates back years and involved no harm to consumers,” said Cory Feinberg, general counsel at MoneyGram, in a statement.

The CFPB, which withdrew from the case on April 7, said its decision followed “direction” from new leadership and was based on “principles of justice and fairness.”

Since January, the agency has scaled back much of its enforcement activity as the Trump administration moves to limit its role, including through significant staff dismissals.

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