WASHINGTON, Jan 15 (Reuters) - Block Inc has agreed to pay an $80 million fine to a coalition of 48 state financial regulators. The regulators found the company lacked adequate policies to detect money laundering through its mobile payment service, Cash App.
As part of the comprehensive settlement, the fintech company will hire an independent consultant to assess its Bank Secrecy Act and anti-money laundering protocols. The consultant will then report any deficiencies to the states. Additionally, Block Inc will implement internal corrective measures, according to the Conference of State Bank Supervisors, the entity that disclosed the resolution.
A Block spokesperson acknowledged that the compliance issues were primarily linked to Cash App's previous compliance program. They highlighted that the company has significantly boosted its investment in compliance and risk management, stating, "We share our regulators’ commitment to addressing industry challenges and will continue to invest across our operations to help promote a safe and healthy fintech ecosystem."
According to recent public filings, Cash App, Block's mobile payment platform, boasted 56 million monthly users by December 2023 and processed over $248 billion in inflows in the same year.
While the state regulators did not specify the exact deficiencies, they noted concerns with the company's compliance program.