Jack Dorsey’s Block to Contest NYDFS Allegations on AML Programs

Jack Dorsey’s payment company Block is in discussions with the NYDFS, including addressing concerns related to the Bank Secrecy Act and anti-money laundering (AML) programs. This was stated in a statement dated February 24.

According to the document, in January, the regulator proposed settlement terms, and the details are currently under discussion. The exact settlement amount has not been disclosed, but Block believes these expenses will not significantly impact the company’s financial performance for 2024.

The results of an audit conducted from 2021 to 2023 revealed deficiencies in the company’s anti-money laundering program, particularly concerning compliance with the Bank Secrecy Act.

In January, Block agreed to pay an $80 million fine over allegations from regulators in several states. However, New York was not among them. At that time, the company neither admitted nor denied the allegations.

Under the terms of the previous settlement, Block committed to appointing an independent consultant to review its AML program, and the Compliance Management Committee will oversee the implementation of corrective measures.

In January, Block’s mobile application Cash App came under investigation by the U.S. Consumer Financial Protection Bureau. The company has already paid a $55 million fine and agreed to compensate affected customers between $75 million and $120 million.

Back in May 2024, media reported on an investigation into the financial operations of Block’s cryptocurrency divisions for compliance. The U.S. Federal Prosecutor suspected Square and Cash App of long-standing compliance procedure violations.