The Oregon Division of Financial Regulation has slammed the brakes on Sigue Corp., a money transmission company struggling under financial strain, barring it from doing any money transmission services in the Beaver State. Joining a growing list of unhappy regulators from various states, Puerto Rico, and the District of Columbia, Oregon is sending a clear signal: Sigue Corp. is not welcome until it gets its house in order.
Known for facilitating financial transactions, especially in Spanish-speaking countries, Sigue has been on a downward spiral, experiencing significant financial deterioration over several months. It has reportedly failed to process numerous money orders and transfers—leaving many customers in the lurch for their rightfully owed funds. Across the U.S., nearly 25,000 transactions are left hanging, with victims owed close to $8.6 million. According to the Oregon Department of Consumer and Business Services, the company also neglected to maintain the net worth and investments required by law to cover these liabilities.
In Oregon alone, there are almost 200 open or unfulfilled transactions amounting to $39,000. Sigue's downfall started gaining national attention in January when it ceased operations countrywide. For concerned Oregonians, the state's financial watchdog comes with a small silver lining—a surety bond with Liberty Mutual Insurance is set to cover all outstanding transactions. Customers affected by Sigue's shortcomings are being directed to file claims directly with the insurer to recoup their losses.
“This order not only shows how Oregon’s system of regulation works to protect consumers, but also highlights the strong partnerships we have with other states, the Money Transmitter Regulators Association, and the Conference of State Bank Supervisors,” said TK Keen, administrator of the Oregon DFR, per the Oregon Department of Consumer and Business Services. Meanwhile, Sigue is required to freeze all business operations and hand over comprehensive books and records for review, to ensure affected customers are judiciously identified and recompensed.
With its high usage among those sending money to Spanish-speaking countries, Oregon's DFR pledges to step up outreach to the Spanish-speaking community and is aligning efforts with the Mexican Consulate to spread awareness about the developing situation and assist consumers in navigating the claims process.
