#Block was fined $80 million.#
Hot Topic Overview
Overview
Financial regulators in 48 U.S. states have 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 stated that Block had failed to fully comply with key requirements, including customer due diligence and high-risk account management, which could have led to its services being used for money laundering, terrorism financing, or other illicit activities. Block has agreed to pay the fine and hire an independent consultant to review the effectiveness of its BSA/AML program. It is required to submit a report within nine months and remedy the issues within 12 months.
Ace Hot Topic Analysis
Analysis
Financial regulators in 48 U.S. states have jointly fined Block Inc., the parent company of 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 failed to fully comply with key requirements, including customer due diligence and management of high-risk accounts, which could have allowed its services to be used for money laundering, terrorist financing, 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 and submit a report within nine months. The company will then have 12 months to rectify any deficiencies found. 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 (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, which could have allowed its services to be used for money laundering, terrorist financing, or other illegal activities.
Block Inc. agreed to pay the fine and hire an independent consultant to review the effectiveness of its BSA/AML program. It must submit a report within nine months and remediate the issues within 12 months.
The action was led by California, Texas, and other states. Block fully cooperated with the investigation.