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PoaPay, Kenyan Diaspora Money Transfer Company banned from Massachusetts, fined $200,000 (KES20Million)
PHOTO:A Kenyan currency bank note note. PIC BY COURTESY/


Jul,12-2017 13:33:14
BOSTON--PoaPay, a Kenyan Diaspora owned foreign money transmittal company has been banned from conducting business in the State of Massachusetts in addition to a $200, 0000 penalty (KSH 20 million) to settle alleged violations of State and Federal laws in the course of remitting money for various customers, mostly to Kenya. (1 USD is approximately KES100 at exchange current rates).

According to an order issued by the Division of Banks in Massachusetts, the body that governs the conduct of financial business in the Bay State, PoaPay has also been banned from applying for a new foreign money license in Massachusetts for a period of at least 10 years.

The order was issued two months ago in July, 2016 after an inspection of the company in Massachusetts revealed possible violations.

"WHEREAS, the Report of Examination/Inspection (the "Report") issued pursuant to the Division's examination/inspection of PoaPay as of July 2, 2015 alleged PoaPay's failure to comply with applicable state and federal laws, rules, regulations, and regulatory guidelines governing the Corporation's conduct as a foreign transmittal business maintaining foreign transmittal agency license number FT1071851;" read a section of the consent order available online at the Division's website.

Among the alleged violations by PoaPay previously posted online by the Division of Banking as "Findings of Fact" and circulated online by Kenyans in Boston--before the final agreement was reached-- included: "Failure to Demonstrate the Financial Responsibility, Character, Reputation, Integrity, and General Fitness to Maintain a Foreign Transmittal Agency License, Unlicensed Activity, Failure to Implement an Effective Anti-Money Laundering/Compliance Program, Failure to Implement Controls to Ensure Compliance with OFAC Requirements, Failure to Maintain a Dedicated Escrow Account with a Federally Insured Bank and Comingling of Funds, Failure to Acquire Adequate Bond Coverage, Failure to Maintain Books, Records and Accounts, Failure to Maintain Compliant Transactional Receipts and Failure to Disclose License Number."

However, rather than go through the entire process of hearings, PoaPay agreed to settle the allegations and refrain from conducting business in the Commonwealth.

"WHEREAS, in recognition of the Division and PoaPay having reached the following mutual agreement under this Consent Order to fully resolve the matters raised by the Order to Show Cause, the Commissioner has terminated the Order to Show Cause on thiss 13th day of July 2016."

It is not yet clear whether the ban affects transactions conducted online with Massachusetts residents.

Details remained scant as to what prompted the investigation into the conduct of the Birmingham Alabama based company owned by Kenya nationals.

Efforts to reach PoaPay agents in the area were fruitless as messages left have not yet been returned. READ FULL CONSENT ORDER HERE>>>


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