Block will pay $40M to New York regulators for failing to uphold anti-money-laundering standards. The probe revealed lax oversight of high-risk bitcoin transactions and a large alert backlog. Block must now appoint an independent monitor to oversee compliance improvements.
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Block to Pay $40 Million in Settlement With New York Finance Regulator Over Anti-Money-Laundering Programs
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The agency said Thursday that its investigation into the parent company of Cash App and Square additionally found its lax practices allowed for largely anonymous and high-risk bitcoin transactions to proceed without proper scrutiny. Block’s rapid growth between 2019 and 2020 also contributed to what the department called a severe transaction alert backlog that went unaddressed for a significant period of time. The agency added that the company failed to meet other regulatory requirements, such as not monitoring transactions in a timely manner or completing proper due diligence.
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