LINCOLN – The Nebraska Department of Banking and Finance (NDBF) is part of an $80 million multi-state enforcement action against Block Inc.

The action is for violations of the federal Bank Secrecy Act (BSA), as well as anti-money laundering (AML) laws that safeguard the financial system from illicit use. 

More than 50 million U.S. consumers use Cash App, which is Block’s mobile payment service, to spend, send, store, and invest money. Block cooperated with the states in the settlement.

Block has agreed to pay a combined $80 million penalty to the participating state agencies, hire an independent consultant to review the comprehensiveness and effectiveness of its BSA/AML program, and submit a report to the states within nine months. Block then will have a year to correct any deficiencies. 

“This is another example of our staff’s work with multi-state coalitions to protect Nebraskans and maintain confidence in the financial services industry. In just the last few weeks, the Department has participated in three multi-state settlements that have returned more than $1.5 million to Nebraska and ensured our regulated financial institutions are complying with Nebraska law,” said NDBF Director Kelly Lammers.

 Under BSA/AML rules, financial services firms must perform due diligence on customers, including verifying customer identities, reporting suspicious activity, and applying appropriate controls for high-risk accounts. State regulators found that Block was not in compliance with certain requirements, creating the potential for its services to be used to support money laundering, terrorism financing, or other illegal activities. 

State financial regulators – like the NDBF – license and serve as the primary supervisor of money transmitters. In fiscal year 2023-24, the NDBF oversaw 185 money transmitters with combined assets of $735.2 billion.

 Additional information on the state regulatory framework for money transmission can be found here. Nebraska residents with questions regarding the settlement may call the NDBF at (402) 471-2171 or send an email via the NDBF’s contact page at ndbf.nebraska.gov.

###

Under the direct supervision of the Governor, the mission of the Nebraska Department of Banking and Finance is to protect and maintain the public’s confidence through fair, efficient, and experienced supervision of the state-regulated financial services industries. Visit ndbf.nebraska.gov.