Block Pays $40 Million Fine to New York Over Cash App Compliance Failures

Thursday 10th of April 2025 13:47:20

Cash App Owner Block Pays $40 Million Fine to New York Over Compliance Failures

NEW YORK: Block, the owner of the popular mobile payment app Cash App, has agreed to pay a $40 million fine to the state of New York over compliance failures, according to a statement from the New York Department of Financial Services (DFS) on Tuesday.

The fine is the result of an investigation by the DFS, which found that Block failed to adequately monitor and report suspicious transactions, and did not have adequate policies and procedures in place to detect and prevent money laundering and other financial crimes.

The DFS also found that Block's failure to comply with New York's banking laws and regulations put the financial system at risk, and that the company's actions were reckless and irresponsible.

Under the terms of the agreement, Block will pay the $40 million fine, and will also implement a comprehensive compliance program to ensure that it is in compliance with all applicable laws and regulations.

"We take seriously our responsibility to ensure that financial institutions are complying with our laws and regulations, and that they are taking adequate steps to detect and prevent financial crimes," said DFS Superintendent Linda A. Lacewell. "Block's failures were significant and unacceptable, and we are pleased that the company has agreed to take steps to correct these issues and to pay a significant fine to the state."

The investigation into Block's compliance failures was launched in 2020, and it was one of the largest and most complex investigations ever conducted by the DFS. The agency worked closely with the New York State Attorney General's Office and other law enforcement agencies to gather evidence and build a case against Block.

Block's Cash App is one of the most popular mobile payment apps in the world, with millions of users. The company was founded in 2013 and was acquired by Square in 2018. It offers a range of financial services, including peer-to-peer payments, bill payments, and investments.