Block Fined $40 Million for Cash App's Anti-Money Laundering Failures

Thursday 10th of April 2025 17:38:19

Block Fined $40 Million for Cash App's Anti-Money Laundering Failures

The Financial Crimes Enforcement Network (FinCEN) has slapped Block, the parent company of Cash App, with a $40 million fine for failing to implement adequate anti-money laundering (AML) controls.

According to FinCEN, Block's Cash App failed to properly identify and verify the identities of millions of customers, and did not maintain accurate records of transactions. The regulator also found that the company did not have adequate procedures in place to detect and prevent suspicious transactions.

The fine, which is one of the largest ever imposed by FinCEN, is a result of an investigation into Cash App's AML controls that was launched in 2019. At the time, FinCEN alleged that the company had failed to file millions of suspicious activity reports (SARs) and had not implemented adequate procedures to detect and prevent money laundering.

Block has agreed to pay the fine and has implemented new AML controls to address the deficiencies identified by FinCEN. The company has also agreed to continue to work with FinCEN to ensure compliance with AML regulations.

The fine is a significant blow to Block, which has been expanding its financial services offerings in recent years. The company has been investing heavily in its Cash App platform, which allows users to send and receive money, as well as invest in cryptocurrencies and stocks.

The failure to implement adequate AML controls has significant implications for financial institutions, as it can put customers and the financial system at risk. FinCEN's action serves as a reminder of the importance of implementing robust AML controls to prevent money laundering and terrorist financing.

Block's fine is the latest in a series of high-profile AML enforcement actions taken by FinCEN in recent years. The regulator has been cracking down on financial institutions that fail to comply with AML regulations, and has imposed significant fines on companies that have been found to be non-compliant.