Bank faces $40m penalty for anti-money laundering failures

Thursday 10th of April 2025 23:06:25

FINEXTRA NEWS

Block to Pay $40m Penalty for AML Failures

New York, USA - Block, the popular cryptocurrency trading platform, has agreed to pay a $40 million penalty to settle allegations that it failed to properly implement anti-money laundering (AML) controls.

According to the Financial Crimes Enforcement Network (FinCEN), Block's failures to comply with AML regulations allowed illegal activity to occur on its platform. The company's lax controls allowed for the transfer of millions of dollars in illicit funds, FinCEN said.

The penalty is the result of an investigation by FinCEN, which found that Block's AML program was inadequate and did not properly identify and report suspicious transactions. The company's failures to implement effective AML controls allowed for the transfer of millions of dollars in illicit funds, FinCEN said.

Under the terms of the settlement, Block has agreed to pay a $40 million penalty and to implement a new and improved AML program. The company has also agreed to provide training to its employees on AML compliance and to conduct regular audits to ensure that its AML program is effective.

"Today's settlement demonstrates the importance of effective AML controls in the financial industry," said FinCEN Director Kenneth A. Blanco. "Block's failures to comply with AML regulations allowed illegal activity to occur on its platform, and we are taking action to ensure that the company takes steps to prevent such failures from occurring in the future."

The settlement is the latest in a series of enforcement actions taken by FinCEN against companies that fail to comply with AML regulations. In recent years, FinCEN has taken action against a number of companies, including banks, money services businesses, and other financial institutions, for failures to comply with AML regulations.

The settlement is a reminder to all companies in the financial industry that effective AML controls are critical to preventing illegal activity and ensuring the integrity of the financial system.