#Block was fined $80 million.#
Hot Topic Overview
Overview
Financial regulators from 48 U.S. states have jointly fined Block Inc.'s mobile payment service, Cash App, $80 million for violating the Bank Secrecy Act (BSA) and anti-money laundering (AML) regulations. The investigation found that Block fell short of complying with key requirements, including customer due diligence and high-risk account management, which could have allowed its service to be used for money laundering, terrorist financing, or other illicit activities. Block has agreed to pay the fine and hired an independent consultant to review its BSA/AML compliance program and submit a report within nine months, and to correct any deficiencies found within 12 months.
Ace Hot Topic Analysis
Analysis
Financial regulators from 48 US states have jointly imposed an $80 million fine on Block, Inc.'s mobile payment service Cash App for violating the Bank Secrecy Act (BSA) and anti-money laundering (AML) regulations. Regulators alleged that Block failed to fully comply with key requirements, including customer due diligence and management of high-risk accounts, potentially exposing its services to use in money laundering, terrorist financing, or other illicit activities. Under a multi-state settlement agreement, Block will pay the fine, engage an independent consultant to review the comprehensiveness and effectiveness of its BSA/AML compliance program, and submit a report within 9 months. The company will then have 12 months to rectify any deficiencies found. The action was led by states including California and Texas. Block cooperated fully 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.
Block Inc. agreed to pay the fine and hire an independent consultant to review the effectiveness of its BSA/AML program.
Block Inc. is required to submit reports within 9 months and remediate issues within 12 months.