By Jane Smith
WASHINGTON (Reuters) – Block Inc has reached an agreement to pay a fine of $80 million to a consortium of 48 state financial regulators after an investigation found that the company lacked adequate measures to prevent money laundering through its mobile payment service, Cash App.
As part of the comprehensive settlement, the fintech company will engage an independent consultant to assess its Bank Secrecy Act and anti-money laundering program, and address any identified deficiencies. Block has also committed to implementing internal corrective actions, as stated by the Conference of State Bank Supervisors, which disclosed the settlement.
In a press release, a spokesperson for Block acknowledged that the issues primarily stemmed from Cash App’s previous compliance framework, emphasizing that the company has significantly boosted investments in compliance and risk management.
“We are aligned with our regulators in tackling industry challenges and will continue to enhance our operations to foster a secure and robust fintech environment,” the spokesperson remarked.
According to recent public filings, Block’s Cash App, a mobile payment platform, boasted 56 million monthly users by December 2023. The app recorded over $248 billion in inflows during the same year.
The state regulators did not specify the deficiencies but cited issues with the company’s compliance program.