US prosecutors examining financial transactions at Block, NBC News reports

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US prosecutors examining financial transactions at Block, NBC News reports
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Halifax Regional Police release Dartmouth suspect’s name and photo | SaltWire #news #novascotia - U.S. prosecutors are examining financial transactions at Block, NBC News reported on Wednesday, citing two people with direct knowledge of the matter.

NBC reported that federal prosecutors were discussing with a former employee alleged widespread compliance lapses at Square and Cash App, the company's two main units.Areas under investigation include whether the company failed to gather sufficient information on customers to assess risks, if Square processed transactions involving countries subject to economic sanctions and if Block handled cryptocurrency transactions for terrorist groups.

Spokespeople for Block, whose shares fell more than 7% in early trading, did not immediately respond to a Reuters request for comment, but told NBC that the company has a"responsible and extensive compliance program," and that it is committed to continually improving it.The former employee said the company did not address breaches when alerted, and most of the transactions being examined were not reported to the government as required, NBC reported.

Some of the transactions involved sanctioned countries like Cuba, Iran, Russia and Venezuela and are as recent as last year.ADVERTISEMENT

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