CashApp owner settles multi-state suit for $80M
The Pennsylvania Department of Banking and Securities (DOBS) yesterday announced that it has joined 47 other state financial regulatory agencies in coordinated action against Block, Inc., owner of the CashApp mobile payment service, for violations of the Bank Secrecy Act (BSA) and anti-money laundering (AML) laws which are designed to protect the financial system from illicit activity. The enforcement action includes a multistate settlement in which Block has agreed to pay an $80 million penalty, with approximately $1.6 million allocated to each of the 48 participating state regulators. State regulators found that Block failed to meet certain requirements, which created the potential for its services to be exploited for money laundering, terrorism financing, and other illegal activities.
As part of the settlement, Block will hire an independent consultant to assess the effectiveness of its BSA/AML program and provide a report to the states within nine months. Block will then have 12 months to correct any deficiencies identified in the review. The enforcement effort, led by state regulators in Arkansas, California, Massachusetts, Florida, Maine, Texas, and Washington, was coordinated with Block’s cooperation throughout the process.