We discovered yesterday that federal prosecutors are investigating Block for widespread compliance lapses.
NBC Information broke this story after interviewing a former Block worker. This individual supplied roughly 100 pages of paperwork that confirmed transactions involving entities in international locations topic to U.S. sanctions.
This individual lambasted Block’s compliance program, saying, “From the bottom up, every part within the compliance part was flawed.” A second individual was in a position to corroborate that assertion.
Block has argued that it has reported hundreds of transactions to OFAC and that the corporate obtained a no-action letter concerning this matter.
I appreciated Simon Taylor’s take. He argues that we are able to’t have monetary inclusion and frictionless experiences with out some AML danger. He additionally mentioned that KYC is damaged and that each large-scale monetary establishment will finally be fined for some type of failing on this space.
This can be a unending struggle for fintechs and banks. It will likely be attention-grabbing to see what the Southern District of New York finds of their investigation. Keep tuned.
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