Salem, OR – The Oregon Division of Financial Regulation (DFR) and 47 other state financial regulatory agencies have reached a multistate settlement with Block Inc., the parent company of CashApp, for violating the Bank Secrecy Act (BSA) and anti-money laundering (AML) laws. This coordinated enforcement action highlights the ongoing efforts by regulators to safeguard the financial system and prevent illegal activities such as money laundering and terrorism financing.
Block Inc., which serves over 50 million consumers in the U.S. through its mobile payment platform, CashApp, was found to be non-compliant with several critical BSA/AML requirements. These regulations are designed to ensure financial institutions implement measures to detect and prevent illicit activities, including customer identity verification, reporting suspicious transactions, and maintaining robust controls on high-risk accounts.
According to state regulators, Block failed to meet certain obligations, raising concerns that its services could have been exploited for illegal purposes. The company’s inadequate compliance with these laws led to the $80 million penalty, which Block agreed to pay as part of the settlement.
As part of the agreement, Block has committed to hiring an independent consultant to conduct a thorough review of its BSA/AML program. This review will assess the program’s comprehensiveness and effectiveness in detecting and preventing illegal activities. Block will be required to submit a detailed report to the state agencies within nine months, and if deficiencies are identified, the company will have 12 months to implement corrective measures.
Oregon’s DFR Administrator, TK Keen, emphasized the importance of holding companies accountable for compliance with laws that protect consumers and the financial system. “This settlement reinforces our commitment to safeguarding the financial system and ensuring compliance with laws designed to prevent illicit activity,” said Keen.
The case underscores the role of state financial regulators, who license and supervise more than 34,000 nonbank financial services companies across the U.S. These agencies regularly collaborate to enforce state and federal regulations, ensuring that companies operating in the financial sector uphold the standards required to maintain public trust and safety.
In response to the settlement, Block expressed its commitment to addressing the identified issues and enhancing its compliance framework. The company has worked cooperatively with regulators throughout the investigation, demonstrating its willingness to resolve the matter and avoid further regulatory scrutiny.
Consumers in Oregon and other states are encouraged to contact their state’s financial services department for more information on the enforcement action. Oregon residents, in particular, can reach out to the DFR’s consumer advocates at 888-877-4894 or via email at dfr.financialserviceshelp@dcbs.oregon.gov for further assistance. Additionally, residents can visit the Nationwide Multistate Licensing System (NMLS) to verify whether a financial services company is properly licensed to operate in Oregon.
This settlement serves as a reminder to companies in the financial services sector of the critical need to comply with regulatory standards and the potential consequences of failing to do so.
