Block, the parent company of Cash App, has agreed to pay an $80 million fine as part of a settlement with 48 state financial regulators over violations of the Bank Secrecy Act and anti-money laundering regulations. The regulators found that Block had failed to meet certain customer due diligence requirements, potentially allowing its services to be used for money laundering or terrorism financing. As part of the settlement, Block must hire an independent consultant to review its compliance program and address any deficiencies identified. In a separate action, the Consumer Financial Protection Bureau has ordered Block to refund up to $120 million to consumers and pay a $55 million penalty for weak security protocols and allowing fraudulent activity on Cash App. The CFPB also mandated that Block implement 24-hour live customer service, fully investigate unauthorized transactions, and provide timely refunds.



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