Block, the parent company of Cash App, has agreed to pay a fine of $80 million to resolve allegations of violations related to the Bank Secrecy Act (BSA) and anti-money laundering (AML) laws, PYMNTS reports.
The settlement follows a coordinated enforcement action led by 48 state financial regulators.
The enforcement action focused on Cash App’s compliance with BSA and AML regulations, according to a press release from the Conference of State Bank Supervisors issued on January 15. In addition to the financial penalty, Block has committed to taking corrective measures, including hiring an independent consultant to assess and review its BSA/AML program. Block will submit a report on the findings within nine months and address any deficiencies within 12 months after the report is filed.
A spokesperson for Block stated that the settlement resolves an issue related to Cash App’s past compliance practices and highlighted the company’s increased investments in compliance and risk management as the service has grown. The spokesperson reaffirmed Block’s commitment to promoting a safe and healthy FinTech ecosystem.
The Illinois Department of Financial and Professional Regulation (IDFPR), which participated in the enforcement action, emphasized its ongoing mission to ensure the integrity of the financial services industry and protect consumers. Secretary Mario Treto, Jr. said in a press release that the IDFPR will continue to collaborate with other regulators to ensure compliance with applicable laws.
This settlement follows a separate case in which Block agreed to pay $15 million in 2024 to resolve a lawsuit related to a data breach involving Cash App. The breach, which affected over 8 million users, resulted from a former employee maintaining access to sensitive user information. Block has since worked to enhance its security and user protection measures.
