Overview

• Block, Inc., the parent company of Cash App, agreed to pay a $40 million fine to the New York Department of Financial Services (NYDFS) over compliance shortcomings.
• The settlement requires Block to appoint an independent monitor to oversee improvements in its anti-money laundering and risk-control programs.
• NYDFS identified critical gaps in Block’s compliance systems, including inadequate customer due diligence and insufficient monitoring of high-risk bitcoin transactions.
• The regulator noted that Block’s rapid growth created vulnerabilities that exposed its platforms to potential criminal exploitation.
• Block stated it did not admit to wrongdoing and confirmed that the settlement resolves all pending state money transmission license matters.