By PAUL O’DONOGHUE, Senior Correspondent
BLOCK has agreed in principle to pay approximately $764m to resolve a US Department of Justice (DOJ) investigation into alleged anti-money laundering (AML) failures.
The proposed deal would see the payments company enter a three-year deferred prosecution agreement (DPA). The DOJ would defer a charge that Block failed to maintain an effective AML programme, in violation of the Bank Secrecy Act.
Block disclosed the agreement in its quarterly filing with the US Securities and Exchange Commission (SEC) on 3 November. It said it had reached the agreement with the DOJ in October.
“In October 2026, the Company and the DOJ reached an agreement in principle to resolve the matter pursuant to a deferred prosecution agreement (“DPA”),” Block said.
“Under [the DPA] the DOJ will defer, for a period of three years, a charge that the Company failed to maintain an effective anti-money laundering program in violation of the Bank Secrecy Act.
It added that if the company complies with the DPA obligations during the three-year term, the DOJ “will move to dismiss with prejudice the deferred charges under the agreement”.
“The DPA is expected to set forth a gross monetary component of approximately $964 million and require a net monetary payment of approximately $764 million based on credit for prior regulatory resolutions,” the company said.
The resolution remains subject to “reaching a final agreement satisfactory to all parties and court approval”, Block said.
Block AML issues
The company has set aside $764m for the issue. However, it warned that the final cost could be higher and said it could not guarantee an agreement “on the terms described above or at all”.
The proposed DOJ deal follows a $40m penalty that the New York State Department of Financial Services (NYDFS) imposed on Block in April 2025.
The penalty addressed shortcomings in the company’s AML and compliance programmes.
NYDFS found that Block had “failed to maintain a compliant and effective AML program”. Its investigation identified weaknesses in customer due diligence, sanctions screening and transaction monitoring.
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