{"id":2065,"date":"2025-01-29T14:20:28","date_gmt":"2025-01-29T14:20:28","guid":{"rendered":"https:\/\/www.soscip.org\/us\/?p=2065"},"modified":"2025-01-29T14:20:29","modified_gmt":"2025-01-29T14:20:29","slug":"maryland-1-6m-settlement-cash-app-parent-company","status":"publish","type":"post","link":"https:\/\/www.soscip.org\/us\/maryland-1-6m-settlement-cash-app-parent-company\/","title":{"rendered":"Maryland Secures $1.6M in Major Settlement with Cash App Parent Company"},"content":{"rendered":"\n<p class=\"wp-block-paragraph\">Maryland is set to receive <strong><a href=\"https:\/\/www.soscip.org\/us\/maryland-1-6m-settlement-cash-app-parent-company\/\" data-type=\"link\" data-id=\"https:\/\/www.soscip.org\/us\/maryland-1-6m-settlement-cash-app-parent-company\/\">$1.6 million<\/a><\/strong> as part of an <strong>$80 million<\/strong> multistate settlement with <strong>Block, Inc.<\/strong>, the parent company of <strong>Cash App<\/strong>. The agreement, which includes <strong>47 other states<\/strong>, addresses violations of <strong>bank secrecy and anti-money laundering laws<\/strong>, the Maryland Department of Labor&#8217;s Office of Financial Regulation announced Tuesday.<\/p>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n\n\n\n<div class=\"wp-block-rank-math-toc-block\" id=\"rank-math-toc\"><h2>Table of Contents<\/h2><nav><ul><li><a href=\"#ensuring-security-in-mobile-payments\">Ensuring Security in Mobile Payments<\/a><\/li><li><a href=\"#what-led-to-the-settlement\">What Led to the Settlement?<\/a><\/li><li><a href=\"#maryland-takes-a-stand\">Maryland Takes a Stand<\/a><\/li><li><a href=\"#stronger-regulations-moving-forward\">Stronger Regulations Moving Forward<\/a><\/li><\/ul><\/nav><\/div>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"ensuring-security-in-mobile-payments\"><strong>Ensuring Security in Mobile Payments<\/strong><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">With over <strong>50 million U.S. users<\/strong>, Cash App is one of the most widely used mobile payment services. However, regulators found <strong>serious compliance failures<\/strong> in its oversight, raising concerns about potential misuse for fraudulent or illegal activities.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">\u201cMobile payment apps have become an inextricable part of our economy,\u201d said <strong>Maryland Secretary of Labor Portia Wu<\/strong>. \u201cIt is essential that we prevent bad actors from misusing payment services to commit fraud.\u201d<\/p>\n\n\n\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p class=\"wp-block-paragraph\"><a href=\"https:\/\/www.soscip.org\/us\/cash-app-settlement-2025\/\" data-type=\"post\" data-id=\"1966\">Cash App Settlement 2025: Eligibility, Payout Per Person, and Everything You Need to Know<\/a><\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><a href=\"https:\/\/www.soscip.org\/us\/refund-visa-mastercards-192-million-settlement\/\" data-type=\"post\" data-id=\"1711\">Get Your Refund in Visa and Mastercard\u2019s $192 Million Class Action Settlement: Deadline is here Soon<\/a><\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><a href=\"https:\/\/www.soscip.org\/us\/16-million-capital-one-settlement\/\" data-type=\"post\" data-id=\"215\">$16 Million Capital One Settlement: Are You Eligible for a Payment or Credit?<\/a><\/p>\n<\/blockquote>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"what-led-to-the-settlement\"><strong>What Led to the Settlement?<\/strong><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">The investigation revealed that <strong>Block, Inc.<\/strong> failed to:<br>\u2714\ufe0f Properly conduct <strong>customer due diligence<\/strong><br>\u2714\ufe0f Adequately report <strong>suspicious activity<\/strong><br>\u2714\ufe0f Implement strong <strong>controls for high-risk accounts<\/strong><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">As a result, Cash App\u2019s <strong>weak compliance safeguards<\/strong> may have left its services vulnerable to <strong>financial crimes<\/strong>.<\/p>\n\n\n\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p class=\"wp-block-paragraph\"><a href=\"https:\/\/www.soscip.org\/us\/verizon-100m-administrative-fees-settlement\/\" data-type=\"post\" data-id=\"393\">Get Paid! Verizon $100M Administrative Fees Class Action Settlement<\/a><\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><a href=\"https:\/\/www.soscip.org\/us\/1797-direct-payments-visa-mastercard-settlement\/\" data-type=\"post\" data-id=\"1895\">$1,797 Direct Payments for Visa and Mastercard Settlement: Here\u2019s What You Need to Know<\/a><\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><a href=\"https:\/\/www.soscip.org\/verizon-class-action-lawsuit-settlement-payout\/\" data-type=\"link\" data-id=\"https:\/\/www.soscip.org\/verizon-class-action-lawsuit-settlement-payout\/\">Verizon Class Action Lawsuit Settlement Customers Could Get Up to $100 Payout<\/a><\/p>\n<\/blockquote>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"maryland-takes-a-stand\"><strong>Maryland Takes a Stand<\/strong><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">&#8220;Maryland will not tolerate poor compliance with critical safeguards,&#8221; stated <strong>Commissioner of Financial Regulation Tony Salazar<\/strong>.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The <strong>$1.6 million<\/strong> allocated to Maryland will support the state\u2019s <strong>financial regulatory efforts<\/strong>, ensuring stronger oversight and protection for consumers.<\/p>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"stronger-regulations-moving-forward\"><strong>Stronger Regulations Moving Forward<\/strong><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">As part of the settlement, <strong>Block, Inc.<\/strong> must:<br>\ud83d\udccc Hire an <strong>independent consultant<\/strong> to review its <strong>compliance program<\/strong><br>\ud83d\udccc Submit a detailed <strong>report within nine months<\/strong><br>\ud83d\udccc Address any <strong>deficiencies within 12 months<\/strong><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">This enforcement action reinforces the importance of <strong>compliance in digital finance<\/strong> and signals <strong>stricter scrutiny<\/strong> for payment service providers moving forward.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Maryland is set to receive $1.6 million as part of an $80 million multistate settlement with Block, Inc., the parent company of Cash App. The agreement, which includes 47 other states, addresses violations of bank secrecy and anti-money laundering laws, the Maryland Department of Labor&#8217;s Office of Financial Regulation announced Tuesday. Ensuring Security in Mobile&nbsp;<a class=\"read-more\" href=\"https:\/\/www.soscip.org\/us\/maryland-1-6m-settlement-cash-app-parent-company\/\">Continue reading<\/a><\/p>\n","protected":false},"author":1,"featured_media":2068,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[4],"tags":[],"class_list":["post-2065","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-finance"],"_links":{"self":[{"href":"https:\/\/www.soscip.org\/us\/wp-json\/wp\/v2\/posts\/2065","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.soscip.org\/us\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.soscip.org\/us\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.soscip.org\/us\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.soscip.org\/us\/wp-json\/wp\/v2\/comments?post=2065"}],"version-history":[{"count":3,"href":"https:\/\/www.soscip.org\/us\/wp-json\/wp\/v2\/posts\/2065\/revisions"}],"predecessor-version":[{"id":2069,"href":"https:\/\/www.soscip.org\/us\/wp-json\/wp\/v2\/posts\/2065\/revisions\/2069"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.soscip.org\/us\/wp-json\/wp\/v2\/media\/2068"}],"wp:attachment":[{"href":"https:\/\/www.soscip.org\/us\/wp-json\/wp\/v2\/media?parent=2065"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.soscip.org\/us\/wp-json\/wp\/v2\/categories?post=2065"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.soscip.org\/us\/wp-json\/wp\/v2\/tags?post=2065"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}