
Illinois, State Regulators Hit Cash App with $80 Million Penalty
Illinois and 47 other state financial regulatory agencies have coordinated action against Block, Inc., the parent company of the popular mobile payment service Cash App, for failing to comply with critical financial laws.
State Agencies Take Action to Safeguard Consumers and Financial System
According to a press release from the Illinois Department of Financial and Professional Regulation (IDFPR), Block Inc. has agreed to pay an $80 million penalty and overhaul its anti-money laundering (AML) and Bank Secrecy Act (BSA) practices.
This addresses violations that could expose the financial system to illicit activities like money laundering and terrorism financing.
Block’s Non-Compliance and Multistate Settlement
The enforcement action, part of a broader multistate settlement led by Arkansas, California, Massachusetts, Florida, Maine, Texas, and Washington State regulators, addresses Block’s failure to meet certain BSA/AML requirements, according to the report.
These rules are designed to prevent illegal activities by ensuring financial services firms verify customer identities, monitor suspicious transactions, and maintain proper controls for high-risk accounts.
As part of the settlement, Block will reportedly hire an independent consultant to evaluate its compliance programs and will submit a report to regulators within nine months. The company will then have 12 months to address any deficiencies identified.
This enforcement action demonstrates the Illinois Department of Financial and Professional Regulation’s (IDFPR) continued commitment to ensuring the integrity of the financial services industry and protecting consumers. -Mario Treto, Jr., Secretary of IDFPR
What Illinois Consumers Should Know
Illinois residents can visit the IDFPR’s Division of Financial Institutions website for more information about the enforcement action and what it means for them.
If you have concerns about your Cash App or want to verify a company’s license status in Illinois, you can visit the NMLS Consumer Access website.
Consumers are encouraged to be vigilant about their financial transactions and report any suspicious activity to the appropriate authorities
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