#Block was fined $80 million.#
Hot Topic Overview
Overview
Financial regulators from 48 U.S. states have jointly fined Block Inc., the parent company of mobile payment service Cash App, $80 million 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 the management of high-risk accounts, potentially allowing its service to be used for money laundering, terrorism financing, or other illegal activities. Block Inc. has agreed to pay the fine, hire an independent consultant to review its BSA/AML compliance program, and submit a report within nine months, as well as correct any deficiencies identified 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 violating the Bank Secrecy Act (BSA) and anti-money laundering (AML) regulations. Regulators alleged that Block failed to fully comply with key requirements, such as customer due diligence and management of high-risk accounts, potentially exposing its services to money laundering, terrorist financing, or other illicit activities. Under the multi-state settlement, Block will pay the fine, 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 states including California and Texas, with Block fully cooperating 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's lack of full compliance could have allowed its services to be 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.
Block must submit a report within 9 months and fix the issues within 12 months.