PROVIDENCE – Rhode Island and 47 other states have fined national technology company Block Inc. – which operates Cash App - $80 million for violating the federal Bank Secrecy Act and anti-money laundering laws that safeguard the financial system from illicit use, the R.I. Department of Business Regulation announced Thursday.
The department says the secrecy act and anti-money laundering laws require financial service firms to perform due diligence, including identity verification, on customers, report suspicious activity and apply appropriate controls for high-risk accounts. State regulators, including RI DBR, found that Block Inc. did not comply with certain requirements, which created the potential for services to be used to support illegal activities, such as money laundering and terrorism financing, RI DBR says.
Of the $80 million collected, Rhode Island is expected to receive $1.6 million, RI DBR says. Along with the fine, Block Inc., RI DBR says, must also hire an independent consultant to review the comprehensiveness and effectiveness of its BSA/AML program and submit a report to states within nine months. After the report is filed, Block Inc. will then have 12 months to fix any discovered deficiencies.
“This action is an example of the ability of state regulators to coordinate efforts to protect consumers and Rhode Island will continue to hold those companies accountable that don’t follow the law,” RI DBR Director Elizabeth Kelleher Dwyer said in a statement.
James Bessette is the PBN special projects editor, and also covers the nonprofit and education sectors. You may reach him at Bessette@PBN.com. You may also follow him on X at @James_Bessette.