As regulations become stricter and the threat landscape continues to evolve, financial institutions will rely on sophisticated solutions to meet the changing demands, remain compliant, and mitigate potential threats. 

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Summary

In January 2025, Block, Inc. in the US agreed to pay an $80m fine to resolve allegations of violating anti-money laundering (AML) and Bank Secrecy Act regulations, as financial regulators from 48 states announced. As regulations become stricter and the threat landscape continues to evolve, financial institutions (FIs) will rely on sophisticated solutions to meet the changing demands, remain compliant, and mitigate potential threats. Artificial intelligence (AI) in AML has resulted in more efficient, accurate, and scalable solutions. Yet, using the technology is also being exploited for new types of financial crime. 

Block’s fine highlights the need for robust compliance measures

The enforcement action targeted Block’s Cash App, highlighting deficiencies in its compliance program. As part of the settlement, Block will engage an independent consultant to review and enhance its AML program, with a report due in nine months and corrective actions to be completed within 12 months. This settlement emphasizes the necessity of strong compliance measures in fintech as regulators continue to enforce financial laws to protect consumers and maintain the integrity of the financial system.

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