US state regulators fine Block Inc $80 million for insufficient money laundering controls

WASHINGTON : Block Inc has agreed to pay a fine of $80 million to a group of 48 state financial regulators after the agencies determined the company had insufficient policies for policing money laundering through its mobile payment service, Cash App.

The multi-statement settlement would also see the fintech firm bring in an independent consultant to review its Bank Secrecy Act and anti-money laundering program, and report back to the states on any deficiencies. The company has also agreed to take corrective actions internally, according to the Conference of State Bank Supervisors, which announced the settlement.

In a statement, a Block spokesperson said the issues were principally related to Cash App's prior compliance program, and the company has significantly increased investment in compliance and risk management.

"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," the spokesperson said.

Block's mobile payment platform, Cash App, had 56 million monthly users as of December 2023, according to recent public filings. The app saw over $248 billion in inflows in 2023.

The state regulators did not offer specifics about the shortcomings, but simply said they had identified issues with the company's compliance program.