Latest news with #AdrienneHarris

Wise hit with $4.2 million fine by multiple US states for AML deficiencies

Finextra

6 days ago

Business
Finextra

Wise hit with $4.2 million fine by multiple US states for AML deficiencies

Money transfer giant Wise has been hit with a $4.2 million fine from multiple US state regulators over deficiencies in its anti-money laundering controls. 0 This content has been selected, created and edited by the Finextra editorial team based upon its relevance and interest to our community. The multi-state settlement involved regulatory agencies from New York, Massachusetts, Texas, California, Minnesota, and Nebraska. Alongside the $4.2 million penalty, the watchdogs have ordered Wise to conduct a lookback for previously closed accounts, enhance its reporting procedures for suspicious activity, strengthen its due diligence procedures for AML/CFT risk, and improve its systems for data integrity regarding customer accounts. Under the order, Wise will engage an independent third party to verify corrective actions to the systems have been performed and, for two years, submit quarterly written progress reports to the multistate regulators. 'Through collaboration with our valued state partners we will continue to ensure that money transmitters adhere to rigorous standards to protect consumers and the integrity of the financial system,' says NYDFS superintendentAdrienne Harris. 'Strong relationships with state and federal regulators alike is crucial to ensuring a fair, transparent, and resilient financial system that protects consumers and fosters innovation across the country.' It's not the first time that Wise has been in hot water with US regulatory bodies. In January, the firm received a $2.025 million penalty from the Consumer Financial Protection Bureau (CFPB) for misleading customers about fees and charges. The firm has also fallen foul of money laundering rules in other jurisdictions: In 2022 it was hit with a $360,000 fine by Abud Dhabi's financial regulator for failing to "establish and maintain adequate AML systems and controls to ensure full compliance with its AML obligations". Wise has also been ordered to undertake a remediation programme in Europe after investigations by the National Bank of Belgium concluded that the fintech did not have proof of address for hundreds of thousands of customers

Block fined $40m over AML failings related to Cash App

Yahoo

11-04-2025

Business
Yahoo

Block fined $40m over AML failings related to Cash App

Fintech firm Block has agreed to pay a $40m fine after New York's Department of Financial Services (DFS) found 'significant' lapses in its anti-money laundering compliance programme linked to its Cash App platform. The violations contravened the Department's money transmission and virtual currency rules. Block has held a licence from the New York Department of Financial Services (NYDFS) to carry out money transmission within the state since 2013. In 2018, the firm was allowed to conduct virtual currency business through Cash App. An investigation by the Department revealed 'critical gaps' in Block's Bank Secrecy Act (BSA)/AML programme. These included inadequate procedures for customer due diligence, a lack of effective risk-based controls, and failure to adequately monitor transactions. Specifically, the company allowed high-risk Bitcoin transactions to occur without sufficient oversight, raising concerns about its anti-money laundering practices. The company's rapid expansion between 2019 and 2020 aggravated the situation. Block neglected to address a backlog of transaction alerts, leaving them unresolved for an extended period. As a result, the Department concluded that Block's monitoring processes were insufficient to detect and prevent potential illicit transactions. Block is also required to appoint an independent monitor. The independent monitor will assess the company's adherence to the Department's regulations, evaluate its corrective actions, and ensure the firm remedies the identified compliance deficiencies. Superintendent of Financial Services Adrienne Harris said: 'All financial institutions, whether traditional financial services companies or emerging cryptocurrency platforms, must adhere to rigorous standards that protect consumers and the integrity of the financial system. 'Compliance functions must keep pace with company growth or expansion. The rapid growth of Block's Cash App absent a robust compliance function created risk and vulnerabilities that violated the rules financial services companies operating in New York must adhere to. 'The Department is taking decisive steps to ensure accountability, including the appointment of an independent monitor to oversee corrective measures.' "Block fined $40m over AML failings related to Cash App" was originally created and published by Retail Banker International, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site. Sign in to access your portfolio

Cash App parent company Block fined $40 million amid money laundering allegations

USA Today

10-04-2025

Business
USA Today

Cash App parent company Block fined $40 million amid money laundering allegations

Cash App parent company Block fined $40 million amid money laundering allegations Show Caption Hide Caption Citigroup's $81 trillion transaction error raises compliance concerns Citigroup's $81 trillion mistake sparks concerns over operational controls and regulatory oversight, prompting investments in upgrades. Straight Arrow News Block XYZ.N will pay a $40 million civil fine and hire an independent monitor to settle charges by New York's financial services regulator that it failed to adequately police and stop money laundering on its Cash App mobile payment service. Announcing the fine on Thursday, New York's Department of Financial Services faulted "critical gaps" in the Bank Secrecy Act, anti-money laundering and know-your-customer programs at Block, led by Twitter co-founder Jack Dorsey and formerly known as Square. In case you missed it: Cash App's parent company ordered to pay $175M for weak security procedures, feds say Block agreed in January to pay an $80 million civil fine to settle similar charges by 48 U.S. state financial regulators. In a statement, the Oakland, California-based payments company did not admit or deny wrongdoing, and said the New York settlement ends "all previously pending state money transmission license matters." Apps such as Cash App and Venmo make it easy for people to transmit money. The New York regulator said Block's alleged shortfalls included inadequate customer due diligence, and inadequate risk-based controls to counter illegal activity such as money laundering and terrorism financing. It also said Block's lax oversight of bitcoin transactions, which it began offering through Cash App in 2018, and the company's subsequent rapid growth created "an environment vulnerable to criminal exploitation." The regulator cited Block's discovery in a 2022 internal investigation of 8,359 Cash App accounts linked to a Russian criminal network. Adrienne Harris, New York's superintendent of financial services, said compliance functions "must keep pace with company growth or expansion" at both traditional financial services companies and emerging cryptocurrency platforms. Cash App had $283 billion of inflows in 2024, and 57 million monthly users at year end, a regulatory filing shows. Reporting by Jonathan Stempel in New York