#Block was fined $80 million.#
Hot Topic Overview
Overview
Financial regulators in 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 found that Block was not fully compliant with key requirements such as customer due diligence and management of high-risk accounts, potentially exposing its service to money laundering, terrorist financing, or other illegal activities. Block has agreed to pay the fine and has retained an independent consultant to review its BSA/AML compliance program. The company will submit a report within nine months and will address any deficiencies found 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 violations of the Bank Secrecy Act (BSA) and anti-money laundering (AML) regulations. Regulators said Block had not fully complied with key requirements, such as customer due diligence and high-risk account management, potentially allowing its service to be used for money laundering, terrorist financing, or other illicit activities. Block Inc. has agreed to pay the fine and has hired 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 is required to correct any identified deficiencies within 12 months. The action was spearheaded by states including California and Texas, and 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 failed to fully comply with key requirements, such as customer due diligence and high-risk account management, which could have resulted in its services being used for money laundering, terrorist financing, or other illegal activities.
Block agreed to pay the fine and hire an independent consultant to review the effectiveness of its BSA/AML program, which will submit a report within 9 months and address issues within 12 months.
The action was led by states including California and Texas, and Block fully cooperated with the investigation.