02:58 PM EDT, 07/19/2024 (MT Newswires) -- (Updates with the current share price movement in the first paragraph and statement from Green Dot's ( GDOT ) Chief Executive George Gresham in the fifth paragraph.)

Green Dot ( GDOT ) shares were down over 6% in recent trading Friday after the Federal Reserve Board fined $44 million for numerous unfair and deceptive practices, and inadequate compliance risk management.

The regulator said Green Dot ( GDOT ) inadequately disclosed tax refund processing fees, and blocked access to accounts of legitimate customers receiving unemployment benefits without proper policies to resolve them.

The company failed to maintain effective consumer compliance risk management and anti-money laundering programs, while breaking the law with marketing, selling and servicing of prepaid debit card products.

The board requires Green Dot ( GDOT ) to hire third parties to enhance consumer compliance and review transaction activities, and develop an anti-money laundering program.

"The order relates to practices in place years ago, and we have taken and will continue taking meaningful steps to correct and remediate those issues, including significant updates to our processes, our product packaging and marketing, our management team and our compliance programs," Green Dot ( GDOT ) Chief Executive George Gresham said in a statement released Friday.

Price: 9.22, Change: -0.60, Percent Change: -6.11