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Investing.com -- Block, the payments company, has agreed to pay a $40 million fine to settle accusations of significant failures in its anti-money laundering compliance program and virtual currency compliance failures on its Cash App platform. This settlement was announced by New York's financial services regulator on Thursday.
In addition to the fine, Block will hire an independent monitor to oversee improvements in compliance. This was stated by Adrienne Harris, New York's superintendent of financial servicers. The monitor's role will be to ensure that the company effectively addresses the issues raised by the regulator and adheres to the necessary regulations moving forward.
The fine comes as a result of what the regulator identified as significant failures in Block's anti-money laundering compliance program. These failures were particularly noted on the company's Cash App platform, a popular digital payment service.
The settlement shows the increasing scrutiny of digital payment platforms by financial regulators. It underscores the importance of robust compliance programs to prevent potential misuse of these platforms for illicit activities such as money laundering.
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