NYDFS settles Cash App AML and virtual-currency compliance failures with Block

What changed

NYDFS imposed a $40 million penalty and independent monitor after finding customer-identification, due-diligence, and transaction-monitoring failures, including controls for high-risk Bitcoin activity.

Who it affects

• Virtual-currency and money-transmission firms, investment advisers diligencing platforms, and clients using Cash App

What is still open

• Completion of remediation and the monitor’s findings

What it means for an advisor

• Use the order as a diligence benchmark for platform growth controls, alert backlogs, customer identification, transaction monitoring, and board oversight.