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Maine Superintendent of Consumer Credit Protection Announces $80 Million Enforcement Action Against Block, Inc., Cash App for BSA/AML Violations

January 15, 2025
Professional & Financial Regulation - Consumer Credit Regulation

FOR IMMEDIATE RELEASE

Contacts:
Linda Conti, Linda.Conti@maine.gov
Edward Myslik, Edward.Myslik@maine.gov

Augusta, Maine The Maine Bureau of Consumer Credit Protection and 47 other state financial regulatory agencies have taken coordinated action against Block, Inc., for violations of Bank Secrecy Act (BSA) and anti-money laundering (AML) laws that safeguard the financial system from illicit use.

State regulators in Arkansas, California, Massachusetts, Florida, Maine, Texas, and Washington State led the multistate enforcement effort. Block cooperated with the states in the settlement.

More than 50 million consumers in the United States use Cash App, Block's mobile payment service, to spend, send, store, and invest money.

In the multistate settlement signed this week, Block agreed to pay a $80 million penalty to the state agencies, hire an independent consultant to review the comprehensiveness and effectiveness of its BSA/AML program, and submit a report to the states within nine months. Block then will have 12 months to correct any deficiencies found in the review after the report is filed.

Under BSA/AML rules, financial services firms are required to perform due diligence on customers, including verifying customer identities, reporting suspicious activity, and applying appropriate controls for high-risk accounts. State regulators found Block was not in compliance with certain requirements, creating the potential that its services could be used to support money laundering, terrorism financing, or other illegal activities.

"Transmitting funds outside of the banking system, where the Electronic Funds Transfer Act provides consumer protections, is risky for consumers because the systems are not well managed" according to Linda Conti, Superintendent of the Maine Bureau of Consumer Credit Protection. We hope this settlement sends a strong message to the industry to get their platforms under control.

State financial regulators license and supervise more than 33,000 nonbank financial services companies through the Nationwide Multistate Licensing System (NMLS), including mortgage companies, money services businesses, consumer finance providers, and debt collectors.

Related Documents

Press Release (PDF)