Block Inc. agreed to pay the U.S. Department of Justice $764 million to resolve an anti-money laundering compliance investigation.
Paying out $764 million in cold, hard cash is a massive hit to profits. Anti-money laundering compliance costs are alarmingly high, putting much greater pressure on ongoing operations. Margins in the payments sector are already thin, and this fine directly undermines the company’s valuation rationale.
$SQ #Block #Compliance
Paying out $764 million in cold, hard cash is a massive hit to profits. Anti-money laundering compliance costs are alarmingly high, putting much greater pressure on ongoing operations. Margins in the payments sector are already thin, and this fine directly undermines the company’s valuation rationale.
$SQ #Block #Compliance
