Department of Justice (DOJ) federal prosecutors from the Southern District of New York are investigating fintech company Block, formerly known as Square, for significant compliance failures in its transaction monitoring systems after a former employee revealed lapses that included processing transactions with sanctioned nations and groups linked to terrorism. Allegations against Block include handling transactions for Cuba, Iran, Russia, Venezuela, and terrorist-linked groups without adequate reporting to government agencies, as well as insufficient customer information collection for risk assessment, despite senior management’s awareness. Block defends its compliance program as responsible and extensive, noting its voluntary reporting of questionable transactions to the Office of Foreign Assets Control (OFAC) and hiring an outside consultant to address identified deficiencies, amidst internal upheaval and recent unexpected board member departures.
Jack Dorsey's Block Faces DOJ Probe Over Alleged Transactions With Sanctioned Nations and Terrorist Groups
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