Block, Inc. Settles for $40 Million Over Anti-Money Laundering Failures
On Thursday, April 10, 2025, Adrienne A. Harris, Superintendent of New York State Department of Financial Services (DFS), announced that Block, Inc. will pay a $40 million settlement due to significant deficiencies in its anti-money laundering (AML) compliance program. The penalty is a result of violations related to the Bank Secrecy Act and the Department’s regulations governing money transmitters and virtual currencies.
The announcement comes as part of a broader effort by the DFS to ensure that all financial institutions, including emerging cryptocurrency platforms, adhere to strict regulatory standards designed to protect consumers and maintain the integrity of the financial system. Superintendent Harris emphasized the importance of compliance functions keeping pace with a company’s growth. She noted that Block’s rapid expansion of its Cash App platform, without adequate compliance measures, posed risks that violated necessary regulations.
Block, which operates Cash App—a peer-to-peer money transmission service—has been licensed to conduct money transmission in New York since 2013 and to engage in virtual currency transactions via Cash App since 2018. The DFS investigation uncovered serious shortcomings in Block’s Bank Secrecy Act/Anti-Money Laundering (BSA/AML) program. Key findings included inadequate customer due diligence, insufficient risk-based controls to mitigate money laundering risks, and failure to monitor transactions effectively and promptly.
Particularly concerning was Block’s treatment of high-risk Bitcoin transactions, which allowed many largely anonymous operations to occur without appropriate scrutiny. The investigation also highlighted a significant backlog of transaction alerts that accumulated during Block’s rapid growth period from 2019 to 2020, which the company failed to address in a timely manner.
In response to these findings, the consent order stipulates that Block will appoint an independent monitor to oversee the implementation of corrective measures and ensure compliance with regulatory requirements moving forward. This monitor will evaluate Block’s efforts to strengthen its compliance framework, ensuring it is capable of effectively identifying and preventing illicit activities.
The Department of Financial Services acknowledged Block’s cooperation during the investigation, noting that the company has already begun investing substantial resources to address the identified compliance issues. The settlement serves as a cautionary reminder of the importance of maintaining robust compliance programs, particularly as financial technology companies continue to expand rapidly.
