Jack Dorsey’s Block: The Great Money Laundering Showdown! 💰🕵️‍♂️

Oh, gather ’round, dear readers, for a tale of Jack Dorsey and his merry band at Block Inc.! This jolly payments firm is currently tiptoeing through the tulips of negotiation with the stern folks at New York state regulators. Why, you ask? Well, it seems they’ve been accused of some rather naughty behavior regarding their Anti-Money Laundering (AML) and Bitcoin programs! 😱

In a rather cheeky filing on February 24, Block announced their “continuing negotiations” with the New York State Department of Financial Services (NYDFS). They’re chatting about all sorts of things, including the Bank Secrecy Act and their rather questionable AML practices. It’s like a game of hide-and-seek, but with money! 💸

“We’re having a lovely chinwag with NYDFS to see if we can settle this little kerfuffle on terms that tickle everyone’s fancy,” they said, with a wink and a nod. 🤭

But wait, there’s more! Dorsey’s Block is juggling a whole circus of legal, regulatory, and tax-related shenanigans. It’s like a three-ring circus, and everyone’s trying to keep their hats on! 🎪

In January, the NYDFS tossed some settlement terms into the air, and discussions are still swirling around like confetti, but alas, no juicy details were spilled in the filing. Block has set aside a little stash of cash for this matter, but they’re not losing any sleep over it, claiming it’s not a big deal for their 2024 financials. Phew! 😌

Now, let’s rewind a bit! Between January 2021 and March 2023, Block was under the watchful eye of money transmission regulators from various states. They found some rather alarming deficiencies in Block’s AML Program, particularly when it came to playing nice with the Bank Secrecy Act. Oh dear! 😬

In January, Block did manage to strike a deal with several state regulators, but New York was playing hard to get. They didn’t admit to any wrongdoing, but they did agree to cough up a whopping $80 million in penalties. That’s a lot of dough! 🍞

As part of their settlement, Block must hire an independent consultant to whip their AML Program into shape, and a Compliance Management Committee will be keeping a watchful eye on the whole shebang. Talk about a babysitter! 👶

But wait, there’s even more! The Consumer Financial Protection Bureau decided to poke around Cash App in January, investigating how they handle customer complaints. Spoiler alert: it wasn’t pretty! 😬

Block ended up paying a $55 million civil penalty and agreed to shell out between $75 million and $120 million in restitution to their beleaguered Cash App customers. Ouch! 💔

And if that wasn’t enough, they’re also in a bit of a pickle with the San Francisco Treasurer and Tax Collector, who decided to audit their tax receipts from 2020 to 2022. Apparently, they think Block owes more taxes on their Bitcoin-related revenue. It’s like a never-ending game of financial whack-a-mole! 🥴

2025-02-26 09:36

Jack Dorsey’s Block Looks to Settle with New York on Money Laundering Claims

Jack Dorsey’s Block: The Great Money Laundering Showdown! 💰🕵️‍♂️

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