34-State AML Action Requires Money Transmitter to Reduce Operations

A money transmitter and crypto kiosk operator settled charges by 34 state financial regulators that it ran a deficient AML program.

The multistate Consent Order resolves issues found in a 2025 multistate examination. The exam found serious deficiencies in the company's compliance, including its Bank Secrecy Act ("BSA") and AML program. According to the Order, its BSA/AML program did not sufficiently mitigate the money laundering risks of its kiosk business, leaving the business vulnerable to exploitation by criminals.

The states of Washington, Georgia, Illinois, Ohio, Arkansas, North Carolina, and Alaska led the action. The Washington State Department of Financial Institutions said criminals increasingly direct scam victims to crypto kiosks, citing FBI figures of more than $388 million in nationwide losses.

The company agreed to stop operating virtual currency kiosks in the participating states by January 1, 2027. If it does not, the Illinois Department of Financial and Professional Regulation said it faces an additional $4 million penalty. The Georgia Department of Banking and Finance said the company may continue other money transmission services in that state.

The company also agreed to pay $2.5 million, which the states will divide based on transaction volume. It must hire an independent consultant to review its BSA/AML program and report to the states within six months. According to Illinois, the company then has 12 months to correct any deficiencies the review finds.