Cash App's Parent Company To Pay Maryland $1.6M In Settlement

Cash App’s Parent Company To Pay Maryland $1.6M In Settlement

Source: General / Radio One

The parent company of Cash App has agreed to pay $80 million in a settlement with Maryland and 47 other states.

Block, Inc., has agreed to pay Maryland $1,6M over violations of bank secrecy and anti-money laundering laws, Maryland Department of Labor’s Office of Financial Regulation announced Tuesday.

The settlement addresses compliance failures in Block’s mobile payment service that more than 50 million U.S. consumers use.

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“Mobile payment apps have become an inextricable part of our economy,” Maryland Secretary of Labor Portia Wu said. “It is essential that we prevent bad actors from misusing payment services to commit fraud.”

State regulators found Block failed to meet certain requirements for customer due diligence, suspicious activity reporting, and controls for high-risk accounts, potentially leaving its services vulnerable to illegal activities.

The settlement also requires Block to hire an independent consultant to review its compliance program and submit a report within nine months. The company will then have 12 months to address any identified deficiencies.

“Maryland will not tolerate poor compliance with critical safeguards,” Commissioner of Financial Regulation Tony Salazar said.

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