Cash App's parent company, Block Inc., will pay an $80 million penalty for violating anti-money laundering regulations, according to the Maine Bureau of Consumer Credit Protection.
Maine joined 47 other states for the coordinated action against Block, which cooperated with states in the settlement. More than 50 million consumers in the United States use Cash App. But regulators found that the company was not meeting certain due diligence requirements, creating the potential for the service to be used to support money laundering, terrorism financing, or other illegal activities.
In addition to paying the penalty, Block will hire an independent consultant to review requirements, submit a report to states in nine months, and then correct any issues. Maine is expected to receive $1.5 million from the penalty but does not have plans yet for how to use the funds.
