MoneyGram adds new ID requirement for all money transfers |

MoneyGram adds new ID requirement for all money transfers

Ryan Brinks 19 January 2018 NEWS

ID now required to transfer funds with MoneyGram

The new security measure aims to protect customers from the risk of money laundering and fraud.

You’ll now need to prove your identity to send or receive money through MoneyGram. The money transfer service launched the new requirement in the US this month, and it will soon be applied worldwide as well.

Aimed at preventing illegal activities like money laundering and fraud, MoneyGram’s new rule applies to transfers of any amount. Expect to show official identification and provide your name, address, phone number and date of birth on whichever end of the transaction you’re involved with.

“The simple fact is that global risk is on the rise,” MoneyGram chief executive officer Alex Holmes said. “… MoneyGram has chosen to be a leader in consumer protection by being first to market with customer identification required at $1.”

Beyond the new mandatory identification requirement for any amount of money transfer, the company noted that additional data collection requirements would apply for higher transaction amounts – though it didn’t specify how much.

In an industry recently plagued by scams and fraud – Western Union is paying back $586 million to scam victims who used its service – MoneyGram is making a move to set the bar higher than the law and industry standards.

Holmes said the company has invested hundreds of millions of dollars in recent years to beef up its compliance program and safeguard its customers’ money.

Security isn’t the only hot-button topic in the money transfer industry. A number of smartphone apps like Apple Pay Cash are getting into the game, though most don’t yet have the capability to transfer funds across international borders. Nevertheless, these social payments are predicted to grow the business about 50% this year. Even more technologically advanced is the concept of blockchain-based money transfer services through cryptocurrencies like Ripple or Stellar Lumens, which are being tested by MoneyGram and banks around the world.

Compare MoneyGram with other leading providers in our guide to international money transfers.

Latest news headlines

Picture: Shutterstock

Ask an Expert

You are about to post a question on

  • Do not enter personal information (eg. surname, phone number, bank details) as your question will be made public
  • is a financial comparison and information service, not a bank or product provider
  • We cannot provide you with personal advice or recommendations
  • Your answer might already be waiting – check previous questions below to see if yours has already been asked

Finder only provides general advice and factual information, so consider your own circumstances, or seek advice before you decide to act on our content. By submitting a question, you're accepting our Privacy and Cookies Policy and Terms of Use.
Go to site