PENNSYLVANIA — The Pennsylvania Department of Banking and Securities (DoBS) has joined 47 other state financial regulatory agencies in a coordinated action against Block, Inc. and its mobile payment service, Cash App.
Cash App is used by over 50 million consumers across the United States to manage and transfer funds.
The DoBS said Block, Inc. violated the Bank Secrecy Act (BSA) and anti-money laundering (AML) laws which are designed to protect the financial system from illicit activity.
State regulators found that Block failed to meet certain requirements, which created the potential for its services to be exploited for money laundering, terrorism financing and other illegal activities.
The enforcement action includes a multistate settlement in which Block has agreed to pay an $80 million penalty, with approximately $1.6 million allocated to each of the 48 participating state regulators.
As part of the settlement, Block will hire an independent consultant to assess the effectiveness of its BSA/AML program and provide a report to the states within nine months. Block will then have 12 months to correct any deficiencies identified in the review.
Pennsylvania residents who have questions about the enforcement action should contact the DoBS Consumer Services Office at 1-800-PA-BANKS (1-800-722-2657) or visit the website.
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