#Block was fined $80 million.#
Hot Topic Overview
Overview
Financial regulators in 48 U.S. states jointly enforced an $80 million fine against Block Inc.'s mobile payment service Cash App for violating the Bank Secrecy Act (BSA) and anti-money laundering (AML) regulations. Regulators found Block fell short on key requirements like customer due diligence and management of high-risk accounts, potentially allowing its services to be used for money laundering, terrorist financing, or other illicit activities. Block Inc. agreed to pay the fine and has hired an independent consultant to review its BSA/AML compliance program, with a report due in 9 months and any identified deficiencies to be corrected within 12 months.
Ace Hot Topic Analysis
Analysis
Financial regulators in 48 U.S. states have jointly enforced an $80 million penalty against Block, Inc.'s mobile payment service Cash App for violating the Bank Secrecy Act (BSA) and anti-money laundering (AML) regulations. Regulators stated that Block failed to fully comply with key requirements, such as customer due diligence and high-risk account management, which could have exposed its service to money laundering, terrorist financing, or other illegal activities. Block has agreed to pay the penalty and has engaged 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 spearheaded by states including California and Texas, and Block cooperated fully throughout 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 such as 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.
The action was led by states including California and Texas, and Block cooperated fully with the investigation.