Block to Pay $80 Million for Cash App Money Laundering Flaws (1)

Digital payments giant Block Inc. agreed to pay $80 million to resolve claims from state regulators that its Cash App unit lacked sufficient protocols to flag illicit transactions.

The Oakland, Calif.-based company didn’t have proper tools in place at Cash App such as verifying customer identities, reporting suspicious transactions, and applying appropriate controls on high-risk accounts, according to a settlement announced Wednesday by the Conference of State Bank Supervisors.

Those failures meant that Cash App’s services could be used for money laundering, terrorism financing, or other illegal activities under the Bank Secrecy Act, the state regulators said.

Regulators from California, ...