Square fined in US for 'unlicensed activity'
Payments start-up Square has been fined $507,000 by Florida financial regulators for operating in the state without a money transmitter license.
Payments start-up Square has been fined half a million dollars by Florida financial regulators for operating in the state without a money transmitter license.
The company applied with the Florida Office of Financial Regulation (OFR) in November for a money transmitter license, but the regulator found that Square started operating in Florida in February 2010 without the required license.
Under Florida law, companies that offer payment processing services and stored value/prepaid access card services must be licensed with OFR.
In an order dated 24 July, the OFR ordered Square to wire the ‘administrative fee’ to the US Department of Financial Services.
In the order, signed by Square’s CFO Sarah Friar, the regulator agreed to approve Square’s license in Florida after it paid the fine.
Square neither accepted nor denied being in breach of the law, but consented to the authority’s finding that it operated as a money transmitter without obtaining a license.