United States of America: State financial regulators reached settlement agreement with Block over alleged non-compliance with anti-money laundering requirements

On 15 January 2025, 48 state financial regulators signed a settlement agreement and consent order resolving compliance concerns with Block's anti-money laundering (AML) programme under the Bank Secrecy Act. The agreement follows a multi-state examination conducted between 1 January 2021 and 31 March 2023, which identified deficiencies in Block's AML practices. Block agreed to pay a USD 79.075 million penalty and USD 925'000 in administrative costs. The order requires Block to implement corrective measures, including independent reviews, board oversight, and a compliance management committee. An independent consultant will monitor the remediation and report progress to the regulators. Block consented to the settlement without admitting or denying the allegations but agreed to enhance its compliance framework to address the regulators' concerns.