#Block was fined $80 million.#
Hot Topic Overview
Overview
Financial regulators from 48 U.S. states have jointly levied an $80 million fine on Block Inc.'s mobile payment service, Cash App, for violating the Bank Secrecy Act (BSA) and anti-money laundering (AML) regulations. Regulators alleged that Block failed to fully comply with key requirements, including customer due diligence and management of high-risk accounts, potentially allowing its service to be used for money laundering, terrorism financing, or other illegal 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 correct any deficiencies found within 12 months.
Ace Hot Topic Analysis
Analysis
The financial regulators of 48 U.S. states 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. The investigation revealed that Block 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, terrorist financing, or other illegal activities. Under the multi-state settlement agreement, 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. Subsequently, the company will have 12 months to correct any deficiencies found. The action was led by California, Texas, and other states, and Block cooperated fully with the investigation throughout.
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 management of high-risk accounts, potentially allowing its services to be used for money laundering, terrorist financing or other illicit activities.
Block Inc. agreed to pay the fine and hire an independent consultant to review the effectiveness of its BSA/AML program, which will submit a report within 9 months and address the issues within 12 months.
The action was led by the states of California, Texas and others, and Block Inc. fully cooperated with the investigation.