#Block was fined $80 million.#

Financial regulators from 48 U.S. states have jointly imposed an $80 million fine on Block, Inc.'s mobile payment service Cash App for violations of the Bank Secrecy Act (BSA) and anti-money laundering (AML) regulations. Regulators pointed out that Block failed to fully comply with key requirements, such as customer due diligence and high-risk account management, potentially allowing its service to be used for money laundering, terrorist financing, or other illegal activities. Block has agreed to pay the fine and has hired an independent consultant to review the effectiveness of its BSA/AML program, with a report due in nine months and remediation within 12 months. The action was led by states including California and Texas, with Block fully cooperating with the investigation. The fine highlights the increasing scrutiny from regulators regarding financial institutions’ compliance with anti-money laundering and anti-terrorist financing regulations. It also serves as a reminder for fintech companies to strengthen their compliance systems to ensure their services are not used for illegal activities.