Jack Dorsey’s Block pays $ 40 million fine on moderate compliance program

Block, Inc. has agreed to a settlement of $ 40 million at the New York Department of Financial Services (NYDFS) for “Significant Failures” in its anti-money laundering program, the Wall Street Regulator, announced on Thursday.

The company, led by Jack Dorsey, agreed to retain an independent monitor after violating the money transmitter and the rules of the money transmitter department, the NYDFs added.

The NYDFs showed that Block’s company “had insufficient due diligence from the customer” and failed to implement systems that were sufficient to prevent money and illegal activities.

The services of Block were ‘vulnerable to criminal exploitation’, said the NYDFS, with the argument that the ‘lax treatment’ of Block of Bitcoin transactions largely allowed anonymous transactions to avoid control.

“Compliance functions must keep pace with the growth or expansion of business growth,” said Nydfs head inspector Adrienne A. Harris in a statement.

With its so -called BitlicenseBlock’s Cash app had been regulated under the NYDFS since 2018 as a virtual currency company.

Last year, cash app ended The support for free peer-to-peer (P2P) Bitcoin payments, while leaning in other cryptocurrency services where users are attracted to.

At the beginning of Thursday trade, the share price of Block had fallen by 3.7%, according to Yahoo Finance Data. It is 36% year-to-date.

Published by James Rubin