Meta's Facebook Fined $50M for Alleged Crypto Compliance, AML Failures

Jack Dorsey's Block Inc Fined by NYDFS for Alleged AML Failures

New York, NY - Block Inc, the fintech company founded by Twitter CEO Jack Dorsey, has been fined $5 million by the New York Department of Financial Services (NYDFS) for alleged failures in its anti-money laundering (AML) and sanctions screening programs.

According to a statement released by the NYDFS, Block Inc's subsidiary, Square, failed to properly implement and maintain its AML and sanctions screening programs, despite being a registered money transmitter in the state. The alleged failures occurred between 2018 and 2021, during which time Square processed millions of transactions.

The NYDFS investigation found that Square's AML program was inadequate, and the company failed to properly identify and report suspicious transactions. Additionally, Square's sanctions screening program was not effective in identifying and blocking transactions with individuals or entities subject to US economic sanctions.

The $5 million fine is the largest ever imposed by the NYDFS for AML and sanctions program failures. The agency has ordered Block Inc to take immediate action to correct its AML and sanctions screening programs and to implement additional measures to prevent future violations.

"This fine sends a strong message to all financial institutions, including fintech companies, that the NYDFS will not tolerate lax compliance with AML and sanctions regulations," said NYDFS Superintendent Linda A. Lacewell. "We expect all registrants to have robust programs in place to prevent and detect money laundering, terrorist financing, and other illicit activities."

Block Inc has agreed to the fine and has implemented new measures to strengthen its AML and sanctions screening programs. The company has also cooperated fully with the NYDFS investigation.