|Traded as||NASDAQ: MGI|
|Key people||Pam Patsley
Chairman and CEO
MoneyGram International Inc. is a money transfer company based in the United States with its headquarters in Dallas, Texas. It has operation centers in St. Louis Park, Minnesota and Brooklyn Center, Minnesota, a call center in Lakewood, Colorado, and regional and local offices around the world. MoneyGram businesses are divided into two categories, consisting of Global Funds Transfers and Financial Paper Products. The company services individuals and businesses through a network of agents and financial institution customers.
MoneyGram International is a result of two businesses merging. One company, Minneapolis-based Travelers Express Co. Inc. was founded in 1940 and became the world’s largest processor of money orders and a major player in the electronic payments industry. The other company that helped create MoneyGram International was Denver-based Integrated Payment Systems Inc., which entered the international money transfer business in 1988. Travelers Express and MoneyGram Payment Systems joined forces in 1998 when Travelers Express’ parent, Viad, purchased MoneyGram Payment Systems. In 2004 Viad spun off the Travelers/MoneyGram group into a new publicly traded company - MoneyGram International Inc.
From 2007-2009, MoneyGram's shares fell 96 percent. It lost more than $1.6 billion from investments in securities backed by risky mortgages in 2008; the losses led the company to sell a majority stake to Thomas H. Lee Partners and Goldman Sachs in exchange for a cash infusion. During the drop, U.S. Bancorp shifted its money transfer services to Western Union. The company began to see profitability again in 2009.
In September 2010, MoneyGram announced that it will move its global headquarters to the city of Dallas, Texas, although Minneapolis, Minnesota will continue to be the hub for its Global Operations and Information Technology Centers of Excellence, and Lakewood, Colorado will continue to host its Call Center Operations. The company officially moved its headquarters as of Nov. 1, 2010.
Money Laundering and Wire-Fraud Violations
On November 9, 2012, MoneyGram International admitted to anti-money laundering and wire fraud violations. MoneyGram services were used by unrelated parties involved in mass marketing and consumer phishing schemes that defrauded tens of thousands of victims in the United States. It was determined that MoneyGram lacked sufficient fraud detection and warning capacity, which is being added as part of the settlement. In addition to agreeing to forfeit $100 million, MoneyGram must retain a corporate monitor who will report regularly to the Department of Justice until 2018. If, after the five-year trial period, the company fullfils its obligations under the deal, prosecutors will seek dismissal of the charges of aiding and abetting wire fraud, and failure to maintain an effective money laundering prevention program.
Global Funds Transfers
- MoneyGram Money Transfer
- MoneyGram Bill Payments Services - allowing consumers to make urgent payments or pay routine bills to certain creditors.
- PropertyBridge (RentPayment) a service to allow property owners to accept payments from their tenants.
Financial Paper Products
- Money Orders - MoneyGram is the second largest money order supplier.
- Official Checks - MoneyGram offers official check outsourcing services which are available to financial institutions in the United States. Official Checks are used by consumers where a payee requires a check drawn on a bank and by financial institutions to pay their own obligations.
- Chris Serres, MoneyGram paid ex-CEO $13.1 million, Star Tribune, March 31, 2009, accessed November 14, 2011.
- "MoneyGram International Moves Global Corporate Headquarters to Dallas." Businesswire.com. September 23, 2010. Retrieved on November 4, 2010.
- "Moneygram International Inc. Admits Anti-Money Laundering and Wire Fraud Violations, Forfeits $100 Million in Deferred Prosecution." justice.gov. November 9, 2012. Retrieved on March 21, 2013.
- "Federal judge OKs MoneyGram fraud deal, $100M fund." ap.org. November 28, 2012. Retrieved on March 21, 2013.