### Cash App parent company fined heavily#
Hot Topic Overview
Overview
Block, the parent company of Cash App, has been fined $80 million by financial regulators in 48 states for violating the Bank Secrecy Act (BSA) and anti-money laundering (AML) regulations. The regulators stated that Block failed to fully comply with key requirements, including 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, submit a report within nine months, and correct any identified deficiencies within 12 months.
Ace Hot Topic Analysis
Analysis
Cash App parent company Block has been fined $80 million by a coalition of financial regulators from 48 states for violating the Bank Secrecy Act (BSA) and anti-money laundering (AML) regulations. Regulators found that Block was not fully compliant with key requirements, including 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 illicit activities. As part of the settlement, Block agreed to pay the fine, hire an independent consultant to review its BSA/AML compliance program, and submit a report within nine months. The company is required to correct any deficiencies identified within 12 months. The action was led by California, Texas, and other states. Block fully cooperated with the investigation. The event signifies that regulators are increasing scrutiny of fintech companies to prevent their services from being used for illegal activities.
Public Sentiment · Discussion Word Cloud
Public Sentiment
Discussion Word Cloud
Classic Views
Cash App parent company Block fined $80 million for violating anti-money laundering and counter-terrorism financing regulations.
Block had deficiencies in customer due diligence and high-risk account management, which may have allowed its services to be used for money laundering, terrorist financing, and other illegal activities.
Block agreed to pay the fine, hire an independent consultant to review its anti-money laundering and counter-terrorism financing program, and submit a report within 9 months and correct any deficiencies found within 12 months.
The action was enforced jointly by financial regulators in 48 states across the United States, and Block fully cooperated with the investigation.