#Block was fined $80 million for violations.#
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 stated that Block failed to fully comply with key requirements, including customer due diligence and high-risk account management, potentially allowing its service to be used for money laundering, financing terrorism, or other illicit activities. Block Inc. has agreed to pay the fine and hire an independent consultant to review its BSA/AML compliance program. The company will submit a report within 9 months and correct any identified deficiencies within 12 months.
Ace Hot Topic Analysis
Analysis
Financial regulators in 48 US states have jointly fined Block, Inc., the mobile payment service Cash App, $80 million for violating the Bank Secrecy Act (BSA) and anti-money laundering (AML) regulations. The regulators found that Block had not fully complied with key requirements including customer due diligence and managing high-risk accounts, potentially allowing its service to be used for money laundering, financing terrorism, or other illegal activities. Under the multi-state 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 California, Texas, and other states, 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 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, submit a report within 9 months and correct the issues within 12 months.
The action was led by the states of California, Texas, and others, and Block cooperated fully with the investigation.