Western Union Co. has agreed to pay $5 million to a number of states for costs and fees as part of an agreement to settle a state-based investigation into its anti-fraud and anti-money-laundering practices.

A joint settlement resolving the multistate investigation focused on complaints from consumers who used Western Union's wire transfer service to send money to third parties involved in schemes to defraud consumers, New York Attorney General Eric Schneiderman said in a statement. In addition to New York, all other 49 states and the District of Columbia participated in this settlement.

Western Union previously agreed to pay $586 million to compensate fraud victims nationwide through a related settlement with the Federal Trade Commission and the Department of Justice.

Pursuant to the agreement, among other initiatives, Western Union will develop a comprehensive anti-fraud program designed to help protect consumers.