Texas and Colorado Jointly Enforce AML Rules on Money Transmitter
Texas and Colorado regulators jointly enforced AML compliance against a money transmitter.
Why it matters: Why it matters: Financial legal and compliance teams must prepare for more collaborative multistate actions and strengthen AML and CFT programs to mitigate regulatory risks and penalties.
- June 22, 2026: Texas and Colorado issued a joint consent order against a licensed money transmitter.
- Violations included late federal reporting, weak agent monitoring, and poor customer data safeguards.
- $200,000 penalty split evenly between Texas and Colorado was agreed without admitting wrongdoing.
- The company must enhance AML/CFT programs, retain an independent consultant, and report quarterly for two years.
On June 22, 2026, the Texas Department of Banking and the Colorado Division of Banking entered a joint consent order with a licensed money transmitter, citing shortcomings in the company’s anti-money laundering (AML) and countering the financing of terrorism (CFT) compliance efforts. The enforcement action arose from an examination initiated in May 2025, which identified multiple violations.
The regulators found that the money transmitter violated federal Bank Secrecy Act (BSA) regulations, the Federal Trade Commission’s Safeguards Rule, and state money transmission laws. Key deficiencies included delayed filing of required federal reports, inadequate monitoring of agents, insufficient independent reviews, and inadequate protections for customer information.
Without admitting the allegations, the company agreed to pay a $200,000 administrative penalty, split equally between Texas and Colorado. Additionally, the consent order mandates that the company retain an independent compliance consultant and implement substantial improvements to its AML/CFT program and monitoring systems. These include strengthening customer due diligence and data integrity controls. The money transmitter also must submit quarterly progress reports to the regulators for up to two years.
"Ensuring licensed money transmitters have adequate BSA and AML compliance programs is essential to protect the financial system from illicit use," stated a spokesperson for the Texas Department of Banking in their press release. This joint enforcement action highlights the increasing cooperation between states in regulating money transmitters, underscoring the heightened scrutiny financial service firms face.
Legal and compliance professionals in the financial sector are advised to anticipate coordinated multistate enforcement actions and review AML programs accordingly to avoid similar penalties and remediation requirements.
By the numbers:
- $200,000 — total administrative penalty split between Texas and Colorado
- May 2025 — start of regulatory examination that led to enforcement
- 2 years — duration of required quarterly progress reports to regulators