The Illinois Department of Financial & Professional Regulation, Division of Financial Institutions, entered a cease-and-desist order against Square Inc. after its investigation discovered the company did not have the required state money-transmitter license.
The Illinois’ Transmitters of Money Act, requires that Square must be licensed to engage in the transmitting of money in the state, which the department says it is not.
Under the cease-and desist order, according to Tech Crunch, Square is liable to the department for $1,000 per transaction it has run in Illinois, plus another $1,000 for each day the company is in violation of the act. Square could be liable to pay the department an amount equal to four times the amount of money transmitted while in violation of the act. The order required full payment by Feb. 5 this year. It’s uncertain whether Square complied.
Square claims it has more than 800,000 U.S. customers.