August 24, 2016
Square Receives Cease and Desist Order in Illinois
March 3, 2013
Mobile card-acceptance pioneer Square has been sent packing—perhaps temporarily—by the state of Illinois. Late last week, it was revealed that the San Francisco-based startup received a cease-and-desist order from the Illinois Department of Financial and Professional Regulation claiming it was in violation of the state’s Transmitters of Money Act.
According to the order, Square never has been licensed as a money transmitter in the state of Illinois and could be fined $1,000 per violation and $1,000 per day that the company is in violation of the act.
While it is not clear whether Square qualifies as a money transmitter—despite Illinois’ stance—the company does appear in the directory of California money transmitters, which indicates the mobile payments company sought and received a money transmitter license in the Golden State.
Square said in a statement that it has been working with the state on the issue “for several months and [is] addressing their concerns.”