#Block was fined $80 million.#
Hot Topic Overview
Overview
Financial regulators in 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. The investigation found that Block failed to fully comply with key requirements including customer due diligence and management of high-risk accounts, potentially allowing its service to be used for money laundering, terrorist financing, or other illicit activities. To resolve the issues, Block agreed to pay the fine, hire an independent consultant to review its BSA/AML compliance program and submit a report within nine months, and correct any identified deficiencies within 12 months.
Ace Hot Topic Analysis
Analysis
Financial regulators in 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 noted that Block failed to fully comply 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 illicit activities. Under the multi-state 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 be required to remedy any deficiencies found within 12 months. The action was led by California, Texas, and other states, and Block cooperated fully with the investigation.
Public Sentiment · Discussion Word Cloud
Public Sentiment
Discussion Word Cloud
Classic Views
Block
Company
was
fined
$80
million
for
violating
the
Bank
Secrecy
Act
and
anti-money
laundering
regulations
Block
failed
to
fully
comply
with
key
requirements
such
as
customer
due
diligence
and
management
of
high-risk
accounts
Block
agreed
to
pay
the
fine
and
hire
an
independent
consultant
to
review
the
effectiveness
of
its
BSA/AML
program
Block
is
required
to
submit
a
report
within
9
months
and
remedy
the
issues
within
12
months