• Economy
  • Editor’s Pick
Money Rise Today – Investing and Stock News
  • Investing
  • Stock
Stock

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

by April 11, 2025
written by April 11, 2025

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 comment
0
FacebookTwitterPinterestEmail

previous post
US stocks rebound as White House signals trade optimism with China
next post
Trump feels in ‘good shape,’ after physical, says he got ‘every question right’ on cognitive test

related articles

U.S. foreign tax bill sends jitters across Wall...

May 30, 2025

Amazon taps Xbox co-founder to lead new team...

May 30, 2025

Nvidia results spark global chip rally

May 30, 2025

Boeing to resume airplane deliveries to China next...

May 29, 2025

E.l.f. Beauty to acquire Hailey Bieber skin care...

May 29, 2025

Dick’s Sporting Goods stands by full-year guidance —...

May 28, 2025

Macy’s CEO says retailer will hike some prices...

May 28, 2025

23andMe to delist from Nasdaq, deregister with SEC

May 28, 2025

Walmart fined for shipping realistic toy guns to...

May 28, 2025

Why Trump’s iPhone tariff threat might not be...

May 25, 2025
Enter Your Information Below To Receive Free Trading Ideas, Latest News, And Articles.


Your information is secure and your privacy is protected. By opting in you agree to receive emails from us. Remember that you can opt-out any time, we hate spam too!

Latest News

  • Trump nominates former defense attorney Emil Bove for federal appeals court vacancy

    May 28, 2025
  • Lululemon stock price is falling apart; it could get worse

    July 31, 2024
  • Pi Network ranks 6th in Finland’s app charts, plans major update at Consensus 2025

    May 9, 2025
  • Judge blocks Trump admin from targeting Democratic law firm after attorneys warn of firm’s demise

    March 12, 2025
  • JD Vance says he was confronted by pro-Ukrainian protesters while walking with toddler daughter

    March 9, 2025

Popular Posts

  • 1

    Secret Service admits leaning on ‘state and local partners’ after claim it ignored Trump team’s past requests

    July 21, 2024
  • 2

    Elon and Vivek should tackle US funding for this boondoogle organization and score a multimillion dollar win

    December 4, 2024
  • 3

    Forex Profit Calculator: Maximize Your Trading Potential

    July 10, 2024
  • 4

    Five more House Democrats call on Biden to drop out, third US senator

    July 19, 2024
  • 5

    Biden calls to ‘lower the temperature’ then bashes Trump in NAACP speech

    July 17, 2024

Categories

  • Economy (829)
  • Editor's Pick (4,735)
  • Investing (624)
  • Stock (775)

Latest Posts

  • EURUSD and GBPUSD: EURUSD on the bullish side this morning

    October 12, 2024
  • Long ADNT: set for bullish move with strong support and positive earnings momentum

    August 2, 2024
  • ‘Utter disaster’: Lindsey Graham calls for Zelenskyy resignation after White House throwdown

    February 28, 2025

Recent Posts

  • Spotify Q2 earnings preview: SPOT has gained over 55% YTD, is a profit turnaround coming?

    July 18, 2024
  • Vance’s active VP role is a historical rarity, ‘huge asset’ to US, says top GOP ally

    April 2, 2025
  • DOGE takes a chainsaw to federal spending with 7 major victories this week: ‘Got to be done’

    February 22, 2025

Editor’s Pick

  • Biden still believes ‘no one is above the law,’ White House says in wake of Hunter pardon

    December 2, 2024
  • Amazon Stock Outlook: Resistance at $186; Eyes $20B+ Savings

    October 10, 2024
  • Microsoft to roll out new autonomous AI agents next month, fending off challenge from Salesforce

    October 22, 2024
  • About us
  • Contacts
  • Privacy Policy
  • Terms & Conditions

Disclaimer: moneyrisetoday.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 moneyrisetoday.com | All Rights Reserved

Money Rise Today – Investing and Stock News
  • Economy
  • Editor’s Pick
Money Rise Today – Investing and Stock News
  • Investing
  • Stock