Block, Inc. has agreed to pay a $40 million settlement to the New York Department of Financial Services (NYDFS) due to significant failures in its anti-money laundering compliance program. An investigation revealed that Block inadequately conducted customer due diligence and failed to install effective systems to prevent money laundering and other illicit activities. The NYDFS stated that Block's services were vulnerable to exploitation by criminals, as its compliance measures allowed many anonymous Bitcoin transactions to bypass scrutiny. As part of the settlement, the company, led by Jack Dorsey, must also retain an independent monitor to ensure adherence to regulatory standards. Since 2018, Block's Cash App has been regulated by the NYDFS as a virtual currency business. In a shift last year, Cash App ceased offering free peer-to-peer Bitcoin payments while focusing on other cryptocurrency services. NYDFS Superintendent Adrienne A. Harris emphasized the need for compliance measures to match the growth of the company.

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