Financial technology firm Green Dot Corp. estimated a pending consent order with the Federal Reserve Board will require a payment of between $20 million to $50 million.

The order relates principally to various aspects of “compliance risk management, including consumer compliance and compliance with anti-money laundering regulations,” Green Dot said in a press release Tuesday.

As part of generally accepted accounting principles, the company said it accrued an estimated liability of $20 million related to the proposed consent order, with the “aggregate range of reasonably possible losses … up to $50 million” for the quarter ended Dec. 31, 2023.

The digital bank added, “There can be no assurance that its accrual is sufficient or that losses from the consent order will not exceed the estimated range.”

The firm noted the proposed consent order relates to “activities and practices that commenced prior to the company’s chief executive officer transition in 2020.”

“We are confident in our financial and regulatory positions and do not expect this to impact our ability to operate and serve our customers and partners on an ongoing basis,” said Green Dot CEO George Gresham in the release.

According to Green Dot’s annual report filed Thursday, it increased investment in “regulatory and compliance infrastructure and will continue with further increases” in response to heightened regulatory scrutiny.

Jeff Dale is Managing Editor, Editorial Projects and Analytics, at Compliance Week. He previously served as Compliance Week's Digital Editor and has worked as a copy editor at the Boston Herald and city editor at The Hour Publishing Co. in Norwalk, Conn.View full Profile

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