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Walmart Facing Federal Money Transfer Fraud Charges
Retailer suggests civil charges are imminent after efforts to settle the matter with federal watchdog recently failed.
June 6, 2022
Earlier this month Walmart (WMT) says it learned the Federal Trade Commission (FTC) plans to move forward with civil charges related to the company’s role as an agent in money transfers. At issue is Walmart’s anti-fraud program and whether Walmart is complying with consumer protection requirements.

In May, the FTC Bureau of Consumer Protection forwarded a revised draft complaint to the FTC seeking authority to file a civil complaint against Walmart. On June 1, 2022— two days before filing its latest quarterly report— Walmart says it learned the FTC voted to authorize the complaint. Walmart had previously been in discussions with the FTC to settle the matter.

Walmart did not provide an estimate of the potential fine associated with the matter in its latest quarterly report. It did however suggest the “scope and outcome” of the matter is uncertain which may suggest the company’s wire transfer practices may face additional scrutiny in other jurisdictions.

The U.S Attorney's Office for the Middle District of Pennsylvania has been investigating Walmart’s consumer fraud program and anti-money laundering compliance with regard to the company’s money transfer services for years. Walmart disclosed the most recent subpoena in the matter was issued in August 2020.

In 2018, Moneygram paid $125 million to settle FTC charges it didn’t do enough to prevent consumers from being swindled via fraudulent money transfers.
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