Block accused of mass compliance failures that saw digi-dollars reach terrorists Fintech biz Block is reportedly under investigation by US prosecutors over claims by a former employee that lax compliance checks mean its Square and Cash App services may have been used by terrorists – or in countries that US orgs are not permitted to do business. The ex-staffer apparently left Block – founded by former …
Hmm. Looks like just being a CEO is not enough to guarantee that you can do that job anywhere.
And, just out of curiosity, does a CEO of a financial institution have to follow the training and certify that he is aware of anti-fraud techniques like every other peon ?
Because it doesn't look like he is.
Square was just another of the many attempts to make money from unregulated businesses, or from regulatory loopholes. It's how PayPal started because cash transfers across state borders were difficult, slow and expensive. But in Europe all these companies must register as banks and comply the with legislation. It's not that difficult to do and still make money, but it does take a little time and effort and margins might be lower, which is why VCs shout "Fuck 'em! We'll deal with regulation when we have to and make as much money as possible until then!"
"Block claimed that's not uncommon after reviews of complex systems, and that hiring an independent review team shows that it takes compliance seriously."
The time to take compliance seriously is when the systems are being designed, not after they've gone live and become available for exploitation.
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