DoBs Joins $80 Million Settlement Against Block, Inc.’s Cash App | Department of Banking and Securities | Commonwealth of Pennsylvania

Pennsylvanians who have questions about the enforcement action should contact the DoBS Consumer Services Office at 1-800-PA-BANKS (1-800-722-2657) or visit the website.

Harrisburg, PA - Today, the Pennsylvania Department of Banking and Securities (DoBS) and 47 state financial regulatory agencies have taken coordinated action against Block, Inc., for violations of the Bank Secrecy Act (BSA) and anti-money laundering (AML) laws which are designed to protect the financial system from illicit activity. The enforcement action includes a multistate settlement in which Block has agreed to pay an $80 million penalty, with approximately $1.6 million allocated to each of the 48 participating state regulators.

Block's mobile payment service, Cash App, is used by over 50 million consumers across the United States to manage and transfer funds.

As part of the settlement, Block will hire an independent consultant to assess the effectiveness of its BSA/AML program and provide a report to the states within nine months. Block will then have 12 months to correct any deficiencies identified in the review. The enforcement effort, led by state regulators in Arkansas, California, Massachusetts, Florida, Maine, Texas, and Washington, was coordinated with Block's cooperation throughout the process.

The BSA/AML rules mandate that financial services firms conduct due diligence on customers, including verifying their identities, reporting suspicious activities, and enforcing safeguards for high-risk accounts. State regulators found that Block failed to meet certain requirements, which created the potential for its services to be exploited for money laundering, terrorism financing, and other illegal activities.

DoBS, through its non-depository deputate, licenses, regulates, and enforces compliance with state and federal laws as applicable for 28,450 non-bank entities, including mortgage brokers, originators, lenders and servicers; auto sales finance companies; debt management and debt settlement companies; check cashers; consumer discount companies; credit services loan brokers; pawnbrokers; and money transmitters.

Pennsylvania residents who have questions about the enforcement action should contact the DoBS Consumer Services Office at 1-800-PA-BANKS (1-800-722-2657) or visit the website. Residents can also visit NMLS Consumer Access to verify that a company is licensed to do business in Pennsylvania, and they may also view past enforcement actions.

MEDIA CONTACT: Joan Z. Nissley, [email protected]

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