Block, Inc. agreed to a $40 million civil monetary penalty and an independent monitor requirement from the New York Department of Financial Services (NYDFS) on April 10, 2025. The settlement addresses allegations related to deficiencies in Block's Bank Secrecy Act (BSA) and Anti-Money Laundering (AML) compliance programs, particularly concerning its Bitcoin operations.
The regulatory action highlights Block's failure to maintain an effective and compliant AML program, which is critical for financial services companies. The imposition of an independent monitor signifies ongoing oversight to ensure the company rectifies its compliance shortcomings.
This settlement follows broader regulatory scrutiny on digital asset companies and underscores the importance of robust compliance controls. The financial penalty and the need for an independent monitor are expected to incur additional costs and operational adjustments for Block.
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