Block, owned by Jack Dorsey, has reached a $40 million settlement with New York regulators for AML violations.

PANews, April 10th - According to The Block, Jack Dorsey’s payment company Block, Inc. has reached a $40 million settlement with New York’s financial regulators due to AML loopholes. The consent order released by the New York State Department of Financial Services on Thursday stated that the investigation found that this fintech company, formerly known as Square, “failed to adequately consider the significant risks posed by the scale and complexity of its business” in its AML program when providing Bitcoin services through Cash App. The regulators specifically pointed out three major vulnerabilities at Block: a lack of risk-based AML controls, insufficient customer due diligence, and lax handling of high-risk Bitcoin transactions leading to a large number of anonymous transactions going unchecked. This is the second time this year that Block has paid a settlement due to AML issues. In January, the company paid $80 million to financial regulators in 48 states. Block spokesperson stated that this settlement marks the resolution of all state-level remittance license-related matters, and emphasized that although the company has not acknowledged the investigation results, it has invested significant resources to improve the compliance system of Cash App. According to the agreement, Block must hire an independent monitor to implement the rectifications.