Overview

• Block Inc. has agreed to pay a $40 million fine to settle charges by New York regulators over inadequate anti-money laundering and know-your-customer controls.
• The settlement requires Block to submit to oversight by an independent monitor to address compliance shortcomings.
• New York's Department of Financial Services cited critical gaps in Block's compliance programs, which created vulnerabilities to criminal exploitation, particularly in bitcoin transactions.
• An internal investigation by Block in 2022 revealed thousands of Cash App accounts linked to a Russian criminal network, highlighting significant oversight failures.
• Block, which did not admit or deny wrongdoing, stated this settlement resolves all pending state money transmission license matters.