03:33 AM EST, 01/16/2025 (MT Newswires) -- (Updates with Block's comments in the fourth and fifth paragraphs.)

Block (SQ) will pay an $80 million fine and undertake corrective action for violations of the Bank Secrecy Act and anti-money laundering laws that safeguard the financial system from illicit use, according to a press statement from the Conference of State Bank Supervisors.

The decision follows coordinated enforcement action by 48 state financial regulators, the press statement said on Wednesday.

"Block agreed to pay the assessed penalty to the state agencies, hire an independent consultant to review the comprehensiveness and effectiveness of its BSA/AML program, and submit a report to the states within nine months," the press statement said. "Block then will have 12 months to correct any deficiencies found in the review after the report is filed."

A Block spokesperson told MT Newswires the company has reached a settlement with a group of state regulators led by Arkansas, California, Florida, Maine, Massachusetts, Texas and Washington to resolve a previously disclosed issue mainly related to Cash App's past compliance program.

"We share our regulators' commitment to addressing industry challenges and will continue to invest across our operations to help promote a safe and healthy fintech ecosystem," the spokesperson said.

Shares of Block closed 2.9% higher on Wednesday and were up slightly in after-hours activity.