OFIR Orders Detroit-Area Money Transmitter to Cease and Desist

Hamtramck’s Alfarooq Express failed to maintain proper financial records, meet net worth requirements and comply with regulations regarding transactions with foreign nationals

December 22, 2011 - The Office of Financial and Insurance Regulation (OFIR) has ordered Alfarooq Express, Inc., a Hamtramck money transmitter, to cease and desist from any money transmission services in the state. A 2011 OFIR investigation found that the company violated the Michigan’s Money Transmission Services Act by:

• Failing to maintain detailed payment records.
• Failing to produce a general ledger containing all asset, liability, capital income and expense accounts.
• Failing to maintain a minimum net worth of $100,000 at all times.
• Failing to compare the names of senders and beneficiaries to the U.S. Department of Treasury’s Specially Designated Nationals list.

“Michigan law’s strict regulations regarding money transmitters protect the state’s consumers against financial harm,” OFIR Commissioner Kevin Clinton said.

Failure to comply with OFIR’s order could subject Alfarooq to a $10,000 civil fine per day for each day the violation continues.

OFIR has handed the results of its investigation over to the proper law enforcement agencies. OFIR’s order can be found at: http://www.michigan.gov/documents/lara/Alfaroof_Express_Inc_-_Order_to_CD_-_SB_371519_7.pdf

For more information about LARA, please visit www.michigan.gov/lara.  Follow us on Twitter www.twitter.com/michiganLARA, “Like” us on Facebook or find us on YouTube www.youtube.com/michiganLARA.