ND DFI Reaches Agreement with Sigue Corp. Over Customer Obligations
Summary
The North Dakota Department of Financial Institutions (DFI) has reached a final agreement with money transmitter Sigue Corp. and its owner for failing to fulfill customer obligations and maintain adequate financial standing. The agreement results in the surrender of Sigue's and GroupEx's money transmitter licenses and restricts the owner's future involvement in the industry.
What changed
The North Dakota Department of Financial Institutions (DFI) has finalized an agreement with Sigue Corp. and its owner, Guillermo de la Viña, addressing the company's failure to meet customer obligations and maintain adequate financial health, which led to its collapse. This action follows a prior order from 39 states and territories for Sigue to cease money transmission activities. As part of the agreement, Sigue Corp. and its subsidiary GroupEx Financial Corp. have surrendered their money transmitter licenses, and de la Viña is prohibited from holding management or control positions in any money transmitter without DFI approval.
This agreement requires Sigue Corp. and de la Viña to resolve outstanding liabilities to customers. Regulated entities, particularly money transmitters, should review their internal controls and financial standing to ensure compliance with state money transmission laws, including net worth and permissible investment requirements. Failure to comply can result in license surrender and restrictions on future operations, as demonstrated by this case.
What to do next
- Review internal controls for financial standing and customer obligation fulfillment
- Ensure compliance with net worth and permissible investment requirements for money transmitters
Penalties
Surrender of money transmitter licenses for Sigue Corp. and GroupEx Financial Corp.; restriction on owner's future management/employment in money transmission without DFI approval.
Source document (simplified)
North Dakota Department of Financial Institutions Reaches Final Agreement with Sigue Corp. for Failing to Fulfill Obligations to Customers
Thursday, March 27, 2025 - 01:00 am
Categories: Order BISMARCK, N.D. – The North Dakota Department of Financial Institutions (DFI) has reached a final agreement with money transmitter Sigue Corp. for failing to fulfill its obligations to customers during its collapse last year.
The agreement with Sigue comes one year after financial regulatory agencies from 39 states, Puerto Rico and the District of Columbia ordered the company to cease engaging in any further money transmission activities due to its declining financial position. The company failed to complete multiple money orders and transmissions and to maintain adequate net worth and permissible investments to cover outstanding liabilities, both violations of state money transmission law.
The agreement requires Sigue Corp. and its owner, Guillermo de la Viña, to resolve Sigue’s failure to meet its outstanding liabilities. The agreement also contains provisions relating to GroupEx Financial Corp., a subsidiary of Sigue and a licensed money transmitter. Under the terms of the agreement, Sigue’s and GroupEx’s money transmitter licenses have been surrendered. Additionally, de la Viña has agreed to refrain from any position of management, control or employment of any money transmitter unless first approved by DFI.
The North Dakota Department of Financial Institutions is an executive branch agency overseen by Commissioner Lise Kruse. DFI is responsible for chartering and regulating state banks and credit unions, and for licensing and regulating 1,700 non-bank financial services companies, 183 of those being money transmitters.
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