#Block was fined $80 million.#
Hot Topic Overview
Overview
Financial regulators in 48 U.S. states have jointly levied an $80 million fine on Block Inc.'s mobile payments service Cash App for violating the Bank Secrecy Act (BSA) and anti-money laundering (AML) regulations. Regulators cited Block's failure to fully comply with key requirements such as customer due diligence and management of high-risk accounts, which could have allowed its services to be used for money laundering, terrorist financing, or other illegal activities. Block has agreed to pay the fine, hire an independent consultant to review its BSA/AML compliance program, and submit a report within 9 months and correct any identified deficiencies within 12 months.
Ace Hot Topic Analysis
Analysis
Financial regulators from 48 U.S. states have jointly imposed an $80 million fine on Block Inc.'s mobile payments service, Cash App, for violating the Bank Secrecy Act (BSA) and anti-money laundering (AML) regulations. The investigation found that Block was not fully compliant with key requirements such as customer due diligence and high-risk account management, which could have allowed its service to be used for money laundering, terrorist financing, or other illegal activities. Under the settlement agreement, Block will pay the fine, hire an independent consultant to review the comprehensiveness and effectiveness of its BSA/AML compliance program, and submit a report within nine months. Subsequently, the company will have 12 months to correct any deficiencies identified. This action was led by states including California and Texas, with Block fully cooperating with the investigation.
Public Sentiment · Discussion Word Cloud
Public Sentiment
Discussion Word Cloud
Classic Views
Block Inc. was fined $80 million for violating the Bank Secrecy Act and anti-money laundering regulations.
Block Inc. failed to fully comply with key requirements such as customer due diligence and management of high-risk accounts, which could have allowed its services to be used for money laundering, terrorist financing, or other illegal activities.
Block Inc. agreed to pay the fine and hire an independent consultant to review the effectiveness of its BSA/AML program, with a report due within 9 months and a 12-month period to address the issues.
The action was led by California, Texas, and other states, with Block Inc. fully cooperating with the investigation.