Block Inc., the parent company of Cash App, has agreed to pay a fine of $80 million to 48 US state financial regulators after an investigation found insufficient policies for detecting money laundering on its mobile payment service. The company will also bring in an independent consultant to review its anti-money laundering program and report back to the states.
As part of the settlement, Block has committed to taking corrective actions internally and increasing investment in compliance and risk management. The regulator’s concerns are related to Cash App’s prior compliance program.
The company’s mobile payment platform has 56 million monthly users and saw over $248 billion in inflows in 2023. The state regulators did not provide specific details on the shortcomings but stated they had identified issues with the company’s compliance program.
Source: https://finance.yahoo.com/news/state-regulators-fine-block-inc-213502848.html