Block Settles for $40 Million After AML Lapses in Cash Apps Bitcoin Transactions
The investigation uncovered significant gaps in the companys anti-money laundering (AML) compliance, particularly related to its Cash App, which facilitates Bitcoin transactions.
Regulatory Issues Over Bitcoin Transactions
The NYDFS revealed that Blocks compliance functions failed to adequately keep up with the companys rapid growth, leaving the firm vulnerable to money laundering and illicit activities. Among the concerns raised was Blocks insufficient scrutiny of high-risk Bitcoin transactions, which allowed largely anonymous transactions to be processed without proper checks.
Blocks Cooperation with Investigations
Despite the issues, NYDFS noted that Block cooperated with the investigation and has since taken corrective steps. The settlement mandates that Block, Inc. hire an independent monitor to oversee compliance improvements, ensuring that it aligns with the regulatory requirements moving forward.
Implications for Cryptocurrency Companies
This settlement serves as a warning for other cryptocurrency companies about the importance of maintaining robust AML compliance systems, especially as businesses grow and diversify their services. NYDFS has long been active in regulating the crypto industry, having implemented the BitLicense regime in 2015 to enforce stringent rules for digital asset companies operating in New York.
The post Block Settles for $40 Million After AML Lapses in Cash Apps Bitcoin Transactions appeared first on Coindoo.
Text source: Coindoo
