Maryland is set to receive $1.6 million as part of an $80 million multistate settlement with Block, Inc., the parent company of Cash App. The agreement, which includes 47 other states, addresses violations of bank secrecy and anti-money laundering laws, the Maryland Department of Labor’s Office of Financial Regulation announced Tuesday.
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Ensuring Security in Mobile Payments
With over 50 million U.S. users, Cash App is one of the most widely used mobile payment services. However, regulators found serious compliance failures in its oversight, raising concerns about potential misuse for fraudulent or illegal activities.
“Mobile payment apps have become an inextricable part of our economy,” said Maryland Secretary of Labor Portia Wu. “It is essential that we prevent bad actors from misusing payment services to commit fraud.”
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What Led to the Settlement?
The investigation revealed that Block, Inc. failed to:
✔️ Properly conduct customer due diligence
✔️ Adequately report suspicious activity
✔️ Implement strong controls for high-risk accounts
As a result, Cash App’s weak compliance safeguards may have left its services vulnerable to financial crimes.
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Maryland Takes a Stand
“Maryland will not tolerate poor compliance with critical safeguards,” stated Commissioner of Financial Regulation Tony Salazar.
The $1.6 million allocated to Maryland will support the state’s financial regulatory efforts, ensuring stronger oversight and protection for consumers.
Stronger Regulations Moving Forward
As part of the settlement, Block, Inc. must:
📌 Hire an independent consultant to review its compliance program
📌 Submit a detailed report within nine months
📌 Address any deficiencies within 12 months
This enforcement action reinforces the importance of compliance in digital finance and signals stricter scrutiny for payment service providers moving forward.
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