#Block was fined $80 million.#
Hot Topic Overview
Overview
Financial regulators in 48 US states have jointly fined Block Inc.'s mobile payment service Cash App $80 million for violating the Bank Secrecy Act and anti-money laundering regulations. The investigation found that Block had deficiencies in its customer due diligence and high-risk account management, which may have allowed its services to be used for money laundering, terrorist financing, or other illegal activities. Block has agreed to pay the fine, hire an independent consultant to review its compliance program and submit a report within 9 months, and rectify any deficiencies found within 12 months.
Ace Hot Topic Analysis
Analysis
Financial regulators in 48 U.S. states have jointly 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 not fully complied with key requirements, including customer due diligence and management of high-risk accounts, which could have enabled its services to be used for money laundering, terrorist financing, or other illegal activities. To resolve the issues, Block agreed to 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. The company will then have 12 months to correct any identified deficiencies. The action was led by states including California and Texas. Block fully cooperated 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 (BSA) and anti-money laundering (AML) regulations.
Block Inc. failed to fully comply with key requirements such as customer due diligence and high-risk account management, potentially allowing its services to be used for money laundering, terrorist financing, or other illicit activities.
Block Inc. agreed to pay the fine and hire an independent consultant to review the effectiveness of its BSA/AML program, with a report due within 9 months and remediation of issues within 12 months.
The action was led by the states of California, Texas, and others, with Block Inc. cooperating fully with the investigation.