#Block was fined $80 million for violations.#
Hot Topic Overview
Overview
Financial regulators from 48 U.S. states 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 weaknesses in 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 has agreed to pay the fine, hire an independent consultant to review its compliance program, submit a report within nine months, and correct any identified deficiencies within 12 months.
Ace Hot Topic Analysis
Analysis
Financial regulators from 48 U.S. states have jointly enforced a $80 million fine against Block, Inc.’s mobile payment service Cash App for violations of the Bank Secrecy Act (BSA) and anti-money laundering (AML) regulations. The investigation found that Block was not fully compliant with key requirements, such as customer due diligence and high-risk account management, potentially exposing its service to money laundering, terrorist financing, or other illegal activities. Under the 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 nine months. The company will then have 12 months to correct any deficiencies identified. The action was led by California, Texas, and other states. 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 and anti-money laundering regulations.
Block Inc. failed to fully comply with key requirements, including customer due diligence and management of high-risk accounts.
Block Inc. agreed to pay the fine and hire an independent consultant to review the effectiveness of its BSA/AML program.
Block Inc. is required to submit a report within 9 months and remediate issues within 12 months.