Attorney General Alan Wilson has joined a collective enforcement action involving 47 state financial regulatory agencies against Block, Inc., formerly known as Square, Inc. The action addresses violations of the Bank Secrecy Act (BSA) and anti-money laundering (AML) laws designed to protect the financial system from illicit activities.
Block's Cash App service is used by over 50 million consumers in the United States for various financial transactions. In a multistate settlement finalized last week, Block agreed to pay an $80 million penalty and engage an independent consultant to assess its BSA/AML program's effectiveness. This consultant is expected to submit a report within nine months, after which Block will have 12 months to address any identified deficiencies.
The enforcement effort was led by state regulators from Arkansas, California, Massachusetts, Florida, Maine, Texas, and Washington State. Block cooperated with these states throughout the settlement process.
According to BSA/AML regulations, financial services firms must conduct due diligence on customers by verifying identities and reporting suspicious activities. It was found that Block did not fully comply with certain requirements of these laws.
State financial regulators license and oversee more than 700 money transmitters through a robust nationwide framework. They regularly coordinate supervision of multistate firms and initiate enforcement actions when necessary to ensure consumer protection and compliance with safety standards.
Consumers can verify if a company is licensed in South Carolina via NMLS Consumer Access or view past enforcement actions. The Money Services Division can be contacted at 803-734-1221 or [email protected]. More information about the division is available on the Attorney General’s Office website.