Jack Dorsey’s company is seeking an agreement with the New York State Department of Financial Services (NYDFS).
Block Inc., the payment company led by Jack Dorsey, has revealed that it is in negotiations with New York‘s regulatory authorities to resolve disputes related to its anti-money laundering (AML) programs and Bitcoin.
According to a document filed on February 24 with the SEC, Block is engaged in “ongoing negotiations” with the NYDFS concerning “among other things, aspects of its programs related to the Bank Secrecy Act/Anti-Money Laundering and Bitcoin.”
The document states:
“The company is in discussions with the NYDFS to determine if this issue can be resolved on acceptable terms.”
Block specified that in January, the NYDFS proposed settlement terms, and discussions are still ongoing, though no specific details have been provided.
Between January 2021 and March 2023, the company was investigated by regulators from several U.S. states. These checks reportedly revealed shortcomings in the company’s AML program, particularly regarding compliance with the Bank Secrecy Act.
In January, an agreement was reached between Block and multiple state regulators, but New York was not among them. Without admitting or denying any wrongdoing, Block agreed to pay $80 million in fines, with payments due by February 2025. The settlement also includes the appointment of an independent consultant to review and improve the company’s AML program, with a Compliance Management Committee overseeing the implementation of corrective measures.
Also in January, the Consumer Financial Protection Bureau launched an investigation into Cash App, the company’s mobile payment service, concerning its handling of customer complaints and disputes. In this case, Block paid a $55 million civil penalty and agreed to compensate Cash App customers with a sum ranging from $75 million to $120 million.
