#Block was fined $80 million.#
Hot Topic Overview
Overview
The Financial Industry Regulatory Authority (FINRA) has fined Block Inc.'s mobile payment service Cash App $80 million for violations of the Bank Secrecy Act (BSA) and anti-money laundering (AML) regulations. The investigation found that Block had compliance issues with customer due diligence and high-risk account management, 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 and has hired an independent consultant to review its BSA/AML compliance program and submit a report within nine months. Block will also rectify any deficiencies identified within 12 months.
Ace Hot Topic Analysis
Analysis
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. Regulators cited Block's failure to fully comply with key requirements, including customer due diligence and high-risk account management, potentially exposing its service to use in money laundering, terrorist financing, or other illegal 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 nine months. The company will then have 12 months to remediate any identified deficiencies. The 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 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 high-risk account management.
Block is required to hire an independent consultant to review the effectiveness of its BSA/AML program and make improvements.
Block could lead to its services being used for illegal activities such as money laundering and terrorist financing.