Oregon joins $80 million enforcement action against Block Inc., CashApp for Bank Secrecy Act violations

Jan. 16, 2025

Salem - The Oregon Division of Financial Regulation (DFR) 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 that safeguard the financial system from illicit use.

More than 50 million consumers in the U.S. use CashApp, Block's mobile payment service, to spend, send, store, and invest money.

In the multistate settlement signed this week, Block agreed to pay an $80 million penalty to the state agencies, hire an independent consultant to review the comprehensiveness and effectiveness of its BSA/AML program, and submit a report to the states within nine months. Block then will have 12 months to correct any deficiencies found in the review after the report is filed.

"Oregon continues to work alongside other states to protect consumers and hold companies accountable," said TK Keen, DFR administrator. "This settlement reinforces our commitment to safeguarding the financial system and ensuring compliance with laws designed to prevent illicit activity."

The settlement was the result of a multistate examination to determine Block's compliance with applicable state and federal laws and regulations. Block worked cooperatively with the state regulators throughout the examination.

Under BSA/AML rules, financial services firms are required to perform due diligence on customers, including verifying customer identities, reporting suspicious activity, and applying appropriate controls for high-risk accounts. State regulators found Block was not in compliance with certain requirements, creating the potential that its services could be used to support money laundering, terrorism financing, or other illegal activities.

Through a strong, nationwide regulatory framework, state financial regulators license and serve as the primary supervisor of money transmitters. States license more than 700 money transmitters. To protect consumers and enforce safety and soundness requirements, state regulators regularly coordinate supervision of multistate firms and, when necessary, initiate enforcement actions. This coordination - networked supervision - supports consistency and collaboration, while preserving the authority of individual states to take direct action. Additional information on the state regulatory framework for money transmission can be found here.

State financial regulators license and supervise more than 34,000 nonbank financial services companies through the Nationwide Multistate Licensing System, including mortgage companies, money services businesses, consumer finance providers, and debt collectors. Oregon residents who have questions about the enforcement action should contact DFR's consumer advocates at 888-877-4894 or email [email protected]. Residents can also visit NMLS Consumer Access to verify that a company is licensed to do business in Oregon.

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About Oregon DFR: The Division of Financial Regulation protects consumers and regulates insurance, depository institutions, trust companies, securities, and consumer financial products and services. The division is part of the Department of Consumer and Business Services, Oregon's largest consumer protection and business regulatory agency. Visit dfr.oregon.gov and dcbs.oregon.gov.