New Mexico to get $1.6M from settlement with Cash App parent company

SANTA FE, N.M. — New Mexico will get around $1.6 million from the parent company of Cash App as a part of a multistate settlement reached this week.

Block Inc. agreed this week to pay an $80 million penalty to 48 state agencies, including the New Mexico Financial Institutions Division. State regulators in Arkansas, California, Massachusetts, Florida, Maine, Texas and Washington led the effort.

Regulators alleged Block Inc. wasn’t in compliance with certain requirements of the Bank Secrecy Act and anti-money laundering laws. They also alleged this made the company’s services more vulnerable to used for money laundering, terrorism financing or “other illegal activities.”

In addition to the settlement money, Block Inc. will also need to hire an independent consultant to review the “comprehensiveness and effectiveness” of its BSA/AML programs. Then, the company will need to submit a report to the states within nine months and correct any “deficiencies” found in the review after they file the report.

New Mexico will get $1,647,000 from this settlement. The state’s regulation and licensing department is expecting that money to arrive in early-February.

If you have questions about the settlement, reach out to the New Mexico Financial Institutions Division online or at 505-476-4885.