#Block was fined $80 million for violations.#
Hot Topic Overview
Overview
The financial regulators of 48 US states have jointly fined Block, the parent company of mobile payment service Cash App, $80 million for violating the Bank Secrecy Act (BSA) and anti-money laundering (AML) regulations. Regulators found that Block was not fully compliant with key requirements such as 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, and correct any deficiencies found within 12 months.
Ace Hot Topic Analysis
Analysis
Block Inc. has been fined $80 million by financial regulators in 48 U.S. states for violating the Bank Secrecy Act (BSA) and anti-money laundering (AML) regulations. The investigation found that Block had not fully complied with key requirements, including customer due diligence and managing high-risk accounts, potentially enabling its services to be used for money laundering, terrorist financing, or other illicit activities. To resolve the issues, Block agreed to pay the fine and retain 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 have 12 months to correct 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
Company
was
fined
$80
million
for
violating
the
Bank
Secrecy
Act
and
anti-money
laundering
regulations
Block
failed
to
fully
comply
with
key
requirements
including
customer
due
diligence
and
high-risk
account
management
Block
agreed
to
pay
the
fine
and
hire
an
independent
consultant
to
review
the
effectiveness
of
its
BSA/AML
program
Block
must
submit
a
report
within
9
months
and
remedy
the
issues
within
12
months