Bismarck, ND – The North Dakota Department of Financial Institutions, in collaboration with 48 other state regulatory agencies, has reached a settlement with Block Inc. following violations of the Bank Secrecy Act (BSA) and Anti-Money Laundering (AML) laws. The financial services company, known for its widely used mobile payment platform Cash App, has agreed to pay a penalty of $80 million to resolve the matter.
The settlement comes after state regulators found that Block failed to fully comply with critical requirements designed to prevent illicit financial activity, including money laundering and terrorism financing. Specifically, Block was found lacking in areas such as verifying customer identities, reporting suspicious activities, and implementing appropriate controls for high-risk accounts.
As part of the agreement, Block will hire an independent consultant to conduct a comprehensive review of its BSA/AML program. The company must submit the results of this review to the regulatory agencies within the next nine months. If any deficiencies are identified, Block will have 12 months to implement corrective measures.
State regulators emphasized the importance of maintaining the integrity of the financial system and ensuring that financial services companies adhere to the highest standards of compliance. Lise Kruse, Commissioner of the North Dakota Department of Financial Institutions, stressed that such actions are essential to safeguard public trust in the financial services industry. “It is important for citizens to be able to have confidence in the financial services industry,” Kruse said. “Financial services companies must abide by North Dakota law.”
More than 50 million users rely on Block’s Cash App to send, store, spend, and invest money. The company, formerly known as Square, provides a range of financial services, but its failure to meet BSA/AML requirements raised concerns over the potential use of its platform for illegal activities.
The settlement is a part of a broader enforcement effort that included collaboration with state regulators from Arkansas, California, Massachusetts, Florida, Maine, Texas, and Washington. The action highlights the ongoing regulatory scrutiny of financial services companies in the United States, particularly those handling large volumes of transactions and sensitive financial data.
The North Dakota Department of Financial Institutions, which supervises nearly 1,700 nonbank financial services companies, plays a key role in ensuring that businesses comply with state laws designed to protect consumers and maintain the integrity of the financial system.
