Wall Street Wizardry
  • Business
  • World News
  • Politics
  • Investing
  • Business
  • World News
  • Politics
  • Investing

Wall Street Wizardry

Business

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

by admin April 16, 2025
April 16, 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

previous post
Israel proposes Gaza ceasefire deal to release 10 hostages for hundreds of Palestinians, Hamas says
next post
Retirees ‘stunned’ as market turmoil over tariffs shrinks their 401(k)s

Related Posts

How America’s chief consumer-protection agency came into the...

February 14, 2025

Tesla reports 336,000 vehicle deliveries in first quarter,...

April 3, 2025

AMD CEO calls China a ‘large opportunity’ and...

May 8, 2025

Pfizer CEO says tariff uncertainty is deterring further...

April 30, 2025

Target CEO to meet with Rev. Al Sharpton...

April 18, 2025

Here’s why banks don’t want the CFPB to...

March 11, 2025

Costco and Teamsters reach tentative contract agreement, avoid...

February 3, 2025

Trump Media sues Brazil Supreme Court judge who...

February 20, 2025

AMC bets on premium screens as Hollywood slate...

April 2, 2025

Retail sales slumped 0.9% in January, down much...

February 15, 2025

    Join our mailing list to get access to special deals, promotions, and insider information. Your exclusive benefits await! Enjoy personalized recommendations, first dibs on sales, and members-only content that makes you feel like a true VIP. Sign up now and start saving!


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

    Editors’ Picks

    • 1

      Financial Agreement signed releasing $2M grant

      January 23, 2025
    • 2

      Netflix shares soar as company reports surging revenue, tops 300 million subscribers

      January 23, 2025
    • 3

      Trump re-designates Iranian-backed Houthis as terrorists: ‘Threaten[s] security of American civilians’

      January 23, 2025
    • 4

      US security contractor will take charge of key checkpoint in Gaza as Israeli forces withdraw

      January 25, 2025
    • 5

      Cyclopharm Signs US Agreement with HCA Healthcare for Technegas®

      January 23, 2025
    • 6

      FDA officially authorizes Zyn nicotine pouches for sale following health review

      January 23, 2025
    • 7

      Universal’s ‘Wicked: For Good’ creates a unique marketing challenge

      January 26, 2025
    • About us
    • Contacts
    • Privacy Policy
    • Terms and Conditions
    • Email Whitelisting

    Disclaimer: wallstreetwizardry.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 wallstreetwizardry.com | All Rights Reserved