Block (ASX:SQ2) was fined $80 million for breaches of the Bank Secrecy Act and anti-money laundering laws in a coordinated enforcement action by 48 US state financial regulators, according to a Thursday statement from the Conference of State Bank Supervisors.

The state regulators found that the dual-listed payments firm was not in compliance with certain requirements under the laws, leading to its services potentially being used to support money laundering, terrorism financing, or other illegal activities.

Block agreed to pay the fine to the regulators and take corrective actions in a multistate settlement. It also agreed to hire an independent consultant to review its bank secrecy and anti-money laundering program. It will then file a report on the issue to the states within nine months.

It will have 12 months to correct any deficiencies found in the review. It cooperated with the states in the settlement, according to the statement.

According to Reuters, a spokesperson for the company stated that the issues primarily stemmed from the Cash App's previous compliance program. The person also noted that the firm has "significantly" boosted its investments in compliance and risk management.