#Block was fined $80 million.#
Hot Topic Overview
Overview
Financial regulators from 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. 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 allowed its services to be used for money laundering, terrorist financing, or other illicit activities. Block 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 will correct any identified deficiencies within 12 months.
Ace Hot Topic Analysis
Analysis
Financial regulators in 48 US states have jointly enforced an $80 million penalty against Block, Inc.'s mobile payments service Cash App for violating the Bank Secrecy Act (BSA) and anti-money laundering (AML) regulations. Regulators pointed out that Block had not fully complied 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. Under a multi-state settlement agreement, Block will pay the penalty, hire an independent consultant to review the comprehensiveness and effectiveness of its BSA/AML compliance program, and submit a report within 9 months. Subsequently, the company will need to correct any identified deficiencies within 12 months. 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 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, submitting a report within 9 months and addressing the issues within 12 months.
The action was led by California, Texas, and other states, and Block fully cooperated with the investigation.