{"id":22933,"date":"2025-04-11T10:21:52","date_gmt":"2025-04-11T07:21:52","guid":{"rendered":"https:\/\/forklog.com\/en\/block-fined-40-million-by-nydfs\/"},"modified":"2025-04-11T10:21:52","modified_gmt":"2025-04-11T07:21:52","slug":"block-fined-40-million-by-nydfs","status":"publish","type":"post","link":"https:\/\/forklog.com\/en\/block-fined-40-million-by-nydfs\/","title":{"rendered":"Block Fined $40 Million by NYDFS"},"content":{"rendered":"

Block, a company founded by Twitter’s Jack Dorsey, has agreed<\/a> to pay $40 million to the New York State Department of Financial Services (NYDFS).<\/p>\n

An investigation revealed “critical gaps” in the company’s anti-money laundering (AML) system, according to an NYDFS press release.<\/p>\n

The company failed to implement adequate controls to prevent financial crimes and did not sufficiently vet its customers. Particular risks arose from processing Bitcoin transactions through the Cash App.<\/p>\n

The regulator described Block’s procedures as “vulnerable” to anonymous and high-risk operations.<\/p>\n

\n

“Compliance functions must keep pace with a company’s growth or expansion. The rapid growth of the Cash App, without a robust compliance system, created risks and vulnerabilities that violated the rules firms providing financial services in New York are required to follow,” said NYDFS Superintendent Adrienne Harris.<\/em><\/p>\n<\/blockquote>\n

The Department emphasized that Block cooperated throughout the investigation and worked on remedies. Under the new agreement, the firm committed to strengthening its compliance system and engaging an independent monitor.<\/p>\n

A company representative told The Block<\/a> that this agreement resolves matters with all U.S. financial regulators. Block has invested significant resources to bring Cash App into compliance with requirements, yet continues to deny the NYDFS findings.<\/p>\n

Back in May 2024, media reported<\/a> on the scrutiny of financial operations within Block’s cryptocurrency divisions.<\/p>\n

On February 24, 2025, it became known<\/a> that the company was in talks with NYDFS regarding issues related to the Bank Secrecy Act and AML programs.<\/p>\n","protected":false},"excerpt":{"rendered":"

Block, a company founded by Twitter’s Jack Dorsey, has agreed to pay $40 million to the New York State Department of Financial Services (NYDFS). An investigation revealed “critical gaps” in the company’s anti-money laundering (AML) system, according to an NYDFS press release. The company failed to implement adequate controls to prevent financial crimes and did […]<\/p>\n","protected":false},"author":1,"featured_media":22932,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"select":"","news_style_id":"","cryptorium_level":"","_short_excerpt_text":"","creation_source":"","_metatest_mainpost_news_update":false,"footnotes":""},"categories":[3],"tags":[1346,1304,1330,1457],"class_list":["post-22933","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news-and-analysis","tag-block","tag-fines","tag-jack-dorsey","tag-nydfs"],"aioseo_notices":[],"amp_enabled":true,"views":"18","promo_type":"","layout_type":"","short_excerpt":"","is_update":"","_links":{"self":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts\/22933","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/comments?post=22933"}],"version-history":[{"count":0,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts\/22933\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/media\/22932"}],"wp:attachment":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/media?parent=22933"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/categories?post=22933"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/tags?post=22933"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}