Block shares climb despite $128m fine
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More news: Block shares lifted in early trade on the ASX despite the fintech company agreeing to pay a $128.5 million fine following money laundering violations in the US.
Block shares were up 3.2% to $138.07 by 10:30am AEDT, extending gains of nearly 40% over the last 12 months.
Block to pay $128m fine after money laundering violations
The news: Afterpay owner Block has agreed to pay a USD80 million ($128.5 million) fine after a group of 48 US state regulators determined the NYSE- and ASX-listed fintech had insufficient policies for addressing money laundering through its payment platform Cash App.
The context: In the multistate settlement signed this week, Block agreed to pay the penalty to the state agencies, hire an independent consultant to review its Bank Secrecy Act and anti-money laundering program.
The company will also be required to submit a report to the states within nine months. It has 12 months to correct any deficiencies found in the review after the report is filed.
State regulators in Arkansas, California, Massachusetts, Florida, Maine, Texas, and Washington State led the multistate enforcement effort. Block cooperated with the states in the settlement.
What they said: "We share our regulators’ commitment to addressing industry challenges and will continue to invest across our operations to help promote a safe and healthy fintech ecosystem," a Block spokesperson told Reuters.
The sources: CSBS media release, Reuters
