Cash App parent company, Block Inc., has agreed to pay an $80 million penalty to 48 state agencies, including the New Mexico Financial Institutions Division, as part of a multistate settlement. New Mexico is set to receive around $1.6 million from this settlement. Regulators from various states alleged that Block Inc. had failed to comply with certain Bank Secrecy Act and anti-money laundering laws, potentially making their services more susceptible to being used for illegal activities like money laundering or terrorism financing.
As part of the settlement, Block Inc. will also hire an independent consultant to review the effectiveness of its BSA/AML programs. The company will then need to submit a report to the states within nine months and address any deficiencies found during the review.
The New Mexico regulation and licensing department is expecting the settlement funds to arrive in early February. For more information about the settlement, individuals can contact the New Mexico Financial Institutions Division online or at 505-476-4885.
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