BALTIMORE, MD—Block, Inc., the parent company of popular mobile payment service Cash App, has agreed to pay $80 million to settle with 48 state financial regulatory agencies, including Maryland, for violations of Bank Secrecy Act (BSA) and anti-money laundering (AML) laws. The settlement, announced by the Maryland Department of Labor’s Office of Financial Regulation, addresses deficiencies in Block’sBSA/AML program that could have allowed its platform to be exploited for illegal activities such as money laundering and terrorism financing.

The Maryland Office of Financial Regulation emphasized the importance of robust oversight of financial institutions, particularly mobile payment apps like Cash App, which boasts over 50 million users in the United States.

“Mobile payment apps have become an inextricable part of our economy,” said Maryland Secretary of Labor Portia Wu. “The fact that these apps are so popular reflects a growing need for accessible financial services, and also underscores the importance of robust oversight from state financial regulators. It is essential that we prevent bad actors from misusing payment services to commit fraud.”

Under BSA/AML regulations, financial institutions are required to verify customer identities, report suspicious activities, and implement controls for high-risk accounts. Block was found to be lacking in compliance with certain aspects of these requirements, raising concerns about the potential misuse of its services.

“Companies that offer money transmission services, like Block and their payment arm CashApp, must follow BSA/AML laws to prevent their platforms from being used for money laundering, fraud, and other criminal activity that harms citizens,” stated Commissioner of Financial Regulation Tony Salazar. “By participating in this multistate settlement, our Office is saying loud and clear that Maryland will not tolerate poor compliance with critical safeguards.”

Maryland will receive approximately $1.6 million from the settlement. In addition to the financial penalty, Block has agreed to engage an independent consultant to evaluate its BSA/AML program and submit a report to the states within nine months. The company will then have a year to address any identified deficiencies.

This article was written with the assistance of AI and reviewed by a human editor.