NORTH DAKOTA (KXNET) — The North Dakota Department of Financial Institutions has joined 48 other state financial regulatory agencies in taking action against Block Inc., a financial service firm, for violations of the Bank Secrecy Act (BSA) and Anti-Money Laundering (AML) laws. Block signed a multistate settlement this week agreeing to pay an $80 million penalty to the state agencies, hire an independent consultant to review its BSA/AML program, and report to the states within nine months. Block will then have 12 months to fix any deficiencies found in the review. More than 50 million people in the United States use Block's mobile payment service called Cash App to spend, store, send, and invest money. Under BSA/AML rules, financial services firms are mandated to verify customer identities, report suspicious activity, apply controls for high-risk accounts, and many other things to keep people's accounts protected and safeguard the financial system from illicit use. State regulators found that Block was not in compliance with certain requirements. This creates the potential that its services could be used for things like money laundering, terrorism financing, or other illegal acts. Mandan Parks enters settlement after ADA violations at Starion Sports Complex “It is important for citizens to be able to have confidence in the financial services industry,” Department of Financial Institutions Commissioner Lise Kruse said. “Financial services companies must abide by North Dakota law, and I appreciate the work of my colleagues, the state regulators in Arkansas, California, Massachusetts, Florida, Maine, Texas and Washington state, who led this multistate enforcement effort.”  The Department of Financial Institutions licenses and supervises nearly 1,700 nonbank financial services companies. North Dakota residents who have questions about the enforcement action should contact the Department of Financial Institutions at [email protected] or (701) 328-9933. In order to verify that a company is licensed to do business in the Peace Garden State, you can visit NMLS Consumer Access. Close Thanks for signing up! Watch for us in your inbox. Subscribe Now Today's Top Stories SIGN UP NOW