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Federal prosecutors are examining financial transactions at Block, owner of Cash App and Square [CNBC]
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co-founder Jack Dorsey, discussing with a former employee alleged widespread and yearslong compliance lapses at the company's two main units, Square and Cash App , two people with direct knowledge of the contacts say. During the discussions, the former employee provided prosecutors from the Southern District of New York documents that they say show that insufficient information is collected from Square and Cash App customers to assess their risks, that Square processed thousands of transactions involving countries subject to economic sanctions and that Block processed multiple cryptocurrency transactions for terrorist groups. Most of the transactions discussed with prosecutors, involving credit card transactions, dollar transfers and Bitcoin, were not reported to the government as required, the former employee said. Block did not correct company processes when it was alerted to the breaches, the former employee told prosecutors and NBC News. Roughly 100 pages of documents the fo
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