#Block was fined $80 million.#
Hot Topic Overview
Overview
Financial regulators from all 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. The investigation found that Block 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 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 nine months and 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 violations of the Bank Secrecy Act (BSA) and anti-money laundering (AML) regulations. The regulators stated that Block had failed to fully comply with key requirements, including customer due diligence and management of high-risk accounts, which could have led to its services being used for money laundering, terrorist financing, or other illicit 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 9 months. The company will then have 12 months to correct any deficiencies found. The action was spearheaded 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 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, including 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 Inc. agreed to pay the fine and hire an independent consultant to review the effectiveness of its BSA/AML program, with a report due within 9 months and remedial actions to be taken within 12 months.
The action was led by the states of California, Texas, and others, and Block cooperated fully with the investigation.