#Block was fined $80 million.#
Hot Topic Overview
Overview
The financial regulators of 48 US 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 found that Block had not fully complied with key requirements such as customer due diligence and management of high-risk accounts, potentially allowing its services to be used for money laundering, terrorist financing, or other illegal activities. Block Inc. has 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 deficiencies found within 12 months.
Ace Hot Topic Analysis
Analysis
Financial regulators from 48 U.S. states have jointly enforced an $80 million penalty against 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 had not fully complied with key requirements related to customer due diligence and high-risk account management, potentially allowing its service to be used for money laundering, financing terrorism, or other illegal activities. Under the settlement agreement, Block will pay the fine and hire an independent consultant to review the comprehensiveness and effectiveness of its BSA/AML compliance program, submitting 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, and 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, including customer due diligence and high-risk account management.
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 a report within nine months and remediate the issues within 12 months.