Block Discloses $964 Million DOJ Anti-Money Laundering Pact
3 min read
Block has disclosed a tentative $964 million agreement with the US Justice Department to resolve allegations that its anti-money laundering programme violated the Bank Secrecy Act. The company would pay $764 million after regulatory credits, according to its November 3 quarterly filing.
The proposed settlement includes a $200 million credit for earlier regulatory resolutions, according to Payments Dive. The agreement in principle was reached in October, but the terms have not been finalised.
Three-Year Deferred Prosecution Agreement
Under the proposed agreement, the Justice Department would defer criminal charges alleging violations of the Bank Secrecy Act for three years. If Block meets its compliance obligations, the DOJ would dismiss the deferred charges with prejudice.
The arrangement centres on allegations that Block failed to maintain an effective programme for detecting money laundering. Its three-year compliance period would determine whether the deferred criminal charges are ultimately dismissed.
Settlement Terms Remain Uncertain
Block cautioned in its quarterly filing that a final agreement was not guaranteed and that settlement costs could exceed the amount already accrued. The DOJ said it would provide further information once the matter was resolved.
The company stated that it “cannot provide any assurance that a final agreement will be reached on the terms described above or at all, or that the DOJ will not ultimately take legal action against the Company should the parties not finalize a resolution.”
A Justice Department spokesperson told Payments Dive that the agency “looks forward to sharing more once the matter is fully resolved.” Block declined additional comment, and executives did not discuss the proposed settlement during Tuesday’s third-quarter earnings call.
Previous Regulatory Actions Against Block
The negotiations follow earlier regulatory scrutiny of Block’s Cash App platform. In March 2023, Hindenburg Research alleged that inadequate fraud controls had enabled criminal activity and questionable accounts.
Block disputed those allegations, calling the report “factually inaccurate and misleading.”
The company subsequently faced separate enforcement proceedings involving consumer protections. In 2025, Block agreed to pay $255 million to resolve allegations concerning Cash App security weaknesses and another $40 million in a New York regulatory action.
In July 2026, Block also agreed to a $45 million settlement with 46 states over allegations that consumers had been misled about Cash App’s safety and fraud protections.
The Securities and Exchange Commission ended its investigation of the matter in March without pursuing enforcement action. That decision did not resolve the separate Justice Department proceedings.
Financial Results Provide Additional Context
The proposed DOJ payment comes as Block reports expanding operations. Third-quarter revenue reached $6.72 billion, while net income rose 23% year on year to $565.6 million.
Founder and chief executive Jack Dorsey’s company must now finalise its federal agreement and meet the resulting compliance requirements to secure dismissal of the deferred charges.
