Block has agreed to pay an $80 million fine and undertake corrective actions to resolve a coordinated enforcement action by 48 state financial regulators that alleged the company violated Bank Secrecy Act (BSA) and anti-money laundering (AML) laws. The enforcement action centered on Block’s mobile payment service, Cash App.
As part of the settlement, Block will hire an independent consultant to review its BSA/AML program, submit a report to the state within nine months, and correct any deficiencies found in the review within 12 months of filing the report. The company also cooperated with the states in the settlement.
Block’s CEO acknowledged that the company has increased its investment in compliance and risk management as Cash App grew. Block shares regulators’ commitment to addressing industry challenges and plans to continue investing across its operations to promote a safe and healthy FinTech ecosystem.
Regulators, including the Illinois Department of Financial and Professional Regulation, emphasized their mission to ensure the integrity of the financial services industry and protect consumers. The enforcement action is part of that effort, which will also involve collaboration with fellow regulators to ensure compliance with all applicable laws.
In another case, Block agreed in August 2024 to pay $15 million to settle a lawsuit claiming the company failed to protect Cash App users from data breaches. This incident occurred in late 2021 when 8.2 million current and former users’ personal information was compromised.
Financial institutions and FinTechs are now working together to bring financial services innovations to the masses, with collaboration enabling each side to leverage its core strengths. This partnership allows for shortened time to market, shared expertise, and resources, ultimately benefiting consumers.
However, regulators will focus on three areas: accountability, risk, and consumer protection in 2025. Greater scrutiny from regulatory bodies like the Consumer Financial Protection Bureau and Federal Deposit Insurance Corp. will clarify compliance responsibilities and lead to enhanced accountability by the banking sector as well as FinTechs.
As open banking becomes more prevalent, collaboration between credit unions and FinTechs is crucial for standardizing how financial data is permissioned by consumers and shared between them. This partnership enables credit unions and FinTechs to meet rising consumer demand for personalized digital experiences, delivered simply and conveniently.
Source: https://www.pymnts.com/news/regulation/2025/block-to-pay-80-million-to-settle-aml-violation-allegations