Sport Investors League
  • Politics
  • Stocks
  • Investing
  • Business

Sport Investors League

  • Politics
  • Stocks
  • Investing
  • Business
Business

Cash App owner Block pays $40 million in settlement over ‘serious compliance deficiencies’

by admin April 12, 2025
April 12, 2025
Cash App owner Block pays $40 million in settlement over ‘serious compliance deficiencies’

New York state’s top financial regulator struck a $40 million settlement Thursday with Block Inc., the parent of Cash App, the popular money transmission service, after having found the company had “serious compliance deficiencies” related to its anti-money laundering program and transaction monitoring processes.

The deficiencies at Block, some involving cryptocurrencies, “created a high-risk environment vulnerable to exploitation by criminal actors,” the New York State Department of Financial Services said in the consent order, noting, for example, that Block’s system did not trigger blocks on bitcoin transactions involving terrorism-connected wallets until that exposure exceeded 10%.

Any exposure to terrorism-connected wallets is illegal, the department said. 

The New York regulator examined Block’s practices from early 2021 to September 2022, concluding it did not keep pace with the significant growth it was experiencing. That resulted in Block’s “inability to fully comply with its obligation to effectively monitor, and thereafter report, the transactions being conducted on its platforms for suspected money laundering and other illicit criminal activity.”

Block, which did not admit to the department’s findings, said it was pleased to put the matter behind it.

“As the department has acknowledged, Cash App has devoted significant financial and other resources to compliance remediation and enhancements,” it said in a statement. “We share the department’s dedication to addressing industry challenges and remain committed to investing across our operations to help promote a safe and healthy financial system.” 

Block was launched by Twitter co-founder Jack Dorsey, who lists his current title as Block Head and chairman.

The details in the settlement parallel exclusive reporting by NBC News last year detailing former Block employees’ allegations that the company’s compliance systems were deeply flawed.

According to the former employees, one of whom was also interviewed by federal prosecutors, Block processed multiple cryptocurrency transactions for terrorist groups and did not correct company processes when it was alerted to breaches. Block began offering bitcoin transactions through Cash App in 2018.

Square, another Block unit, processed thousands of transactions involving countries subject to economic sanctions, one of the former employees told NBC News. Documents the former employee provided showed transactions, many in small dollar amounts, involving entities in countries subject to U.S. sanctions restrictions — Cuba, Iran, Russia and Venezuela — as recently as 2023.  

Under the terms of the settlement, Block agreed to bring on an independent monitor for a year, selected by the New York regulator, to conduct a comprehensive review of the effectiveness of its anti-money laundering and sanctions programs. The monitor will oversee remedial measures as needed, the consent order said, and report its findings to the regulators.

The consent order with the department “does not bind any federal or other state agency or any law enforcement authority,” it noted.

This post appeared first on NBC NEWS

0
FacebookTwitterGoogle +Pinterest
previous post
Key Levels for the S&P 500: Has It Bottomed?
next post
Tech 5: Tech Stocks React to Tariffs in Bumpy Trading Week

Related Posts

Chevy Bolt owners to receive settlement checks after...

May 20, 2024

IMAX CEO expects $1.2 billion in box office...

February 23, 2025

Star real estate agents Alexander brothers arrested in...

December 13, 2024

China opens probe into Nvidia, accusing company of...

December 11, 2024

Summer Fridays are on the decline — companies...

June 17, 2024

Microsoft’s mammoth AI bet will lead to over...

October 3, 2024

Chipotle downplays looming Trump tariffs, says only half...

February 7, 2025

Airbus could prioritize deliveries to non-U.S. customers if...

February 21, 2025

Renters’ hopes of being able to buy a...

May 8, 2024

Trump commutes sentence of Ozy Media founder Carlos...

March 30, 2025

    Get free access to all of the retirement secrets and income strategies from our experts! or Join The Exclusive Subscription Today And Get the Premium Articles Acess for Free


    By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

    Recent

    • RRG Alert Tech Vaults to ‘Leading’—Is XLK Signaling a New Rally?

      June 21, 2025
    • Inside the Situation Room, where Trump and his national security team are weighing next steps on Iran

      June 21, 2025
    • Four plead guilty in massive bribery scheme at agency Democrats fought to protect from DOGE

      June 21, 2025
    • European diplomats urge Iran to continue US nuclear talks in first face-to-face since strikes started

      June 21, 2025
    • As Iran talks get underway, expert raises alarm over lack of plan to secure nuclear material

      June 21, 2025

    Categories

    • Business (992)
    • Investing (2,438)
    • Politics (3,017)
    • Stocks (1,085)
    • About us
    • Contact us
    • Privacy Policy
    • Terms & Conditions

    Disclaimer: sportinvestorsleague.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2025 sportinvestorsleague.com | All Rights Reserved