Block expects to pay $764M under DOJ AML deal in principle

2 min

Block disclosed an agreement in principle with the US Department of Justice to resolve an allegation that it failed to maintain an effective anti-money-laundering program under the Bank Secrecy Act. The contemplated deferred prosecution agreement outlines approximately $964 million in gross monetary terms and a potential $764 million net payment after credits. The resolution requires a final agreement and court approval, and losses could exceed the accrued amount.

Key terms of the proposed resolution

Structure: A deferred prosecution agreement with a three-year term. Prosecutors would defer the charge and seek dismissal if Block fulfills obligations during the term.
Financials: About $964 million gross; approximately $764 million net after credits. Block accrued $764 million as of September 30, 2026.
Status: Not final. Subject to satisfactory definitive terms and judicial approval. The company states no guarantee of finalization.

Context for Cash App and Square

Scope: Cash App supports bitcoin and fiat payments, cards, lending, and other financial tools. Compliance breakdowns can affect multiple product lines, not only crypto transactions.
Regulatory background: The DOJ inquiry follows 2023 allegations regarding compliance and risk practices. A separate SEC investigation concluded in March 2026 without recommending enforcement, which is distinct from the DOJ matter.

Operational implications

Compliance scale: Effective suspicious-activity monitoring, customer identification, and escalation must operate consistently across large user volumes and transaction counts.
Remediation: Financial penalties do not confirm remediation. Stakeholders will assess systems, staffing, governance, and any independent monitoring requirements to prevent recurrence.

Next steps

Finalization: Completion depends on reaching definitive terms and court approval, including any monitoring or compliance obligations.
Financial exposure: The $764 million is an expected net payment under the proposed terms, not confirmation that the case is closed. Actual losses could exceed accruals if terms change.

Robert F. Kennedy Department of Justice Building in Washington, D.C. Photo: Gunnar Klack via Wikimedia Commons, licensed under CC BY-SA 4.0.