Block Reaches Preliminary $764 Million DOJ Deal Over AML Controls

Block Inc., the payments company behind Square and Cash App, reached an agreement in principle with the U.S. Department of Justice in October for a deferred prosecution deal over its anti-money laundering program, the company said in its quarterly report filed Tuesday with the Securities and Exchange Commission.

Under the contemplated deferred prosecution agreement, the Justice Department would defer for three years a charge that Block failed to maintain an effective anti-money laundering program in violation of the Bank Secrecy Act, according to the filing. The agreement is expected to set a gross monetary component of about $964 million and a net payment of about $764 million after credit for prior regulatory resolutions, Block said. The company has accrued $764 million for the matter as of Sept. 30.

Terms still need a final pact and court approval

The resolution remains subject to a final agreement satisfactory to all parties and to court approval, Block said. The company warned that it cannot assure a final deal on those terms or at all, and that the Justice Department could still take legal action if the parties do not finish a resolution. Block also said final terms could produce losses above the amount already accrued. A Justice Department spokesperson told Payments Dive the department looks forward to sharing more once the matter is fully resolved.

If Block complies with the obligations in a final deferred prosecution agreement during the three-year term, the Justice Department would move to dismiss the deferred charges with prejudice, the filing said.

Earlier probes and other settlements

Block said the Justice Department and the SEC opened inquiries after a March 2023 short-seller report that criticized the company’s compliance and risk practices. In March 2026, SEC staff notified Block that the commission’s investigation was closed and that staff did not intend to recommend an enforcement action, according to the filing.

Separately, Block has faced state and federal consumer and compliance actions in recent years, including a $40 million New York banking-regulator penalty in 2025 over anti-money laundering shortcomings, according to AML Intelligence, and earlier multi-state settlements over Cash App consumer protections reported by Payments Dive.

Block reported third-quarter net revenue of about $6.72 billion and net income attributable to common stockholders of about $565.6 million, according to the same Form 10-Q. Shares rose in extended trading after the earnings release, Reuters reported.

Developing: The deferred prosecution agreement has not been finalized or approved by a court, and Block said the ultimate payment and terms could change.

Sources: Block Inc. Form 10-Q filed with the SEC, Payments Dive, Reuters, Bloomberg News.