Block discloses proposed $964 million DOJ resolution

Block disclosed a proposed resolution with the U.S. Department of Justice totalling about $964 million gross, tied to allegations that it failed to maintain an effective anti-money-laundering programme under the Bank Secrecy Act.

The company's filing, submitted on 3 November 2026, said a three-year deferred prosecution agreement could require a net payment of about $764 million after credit for earlier regulatory resolutions. The parties reached an agreement in principle in October, but final terms and court approval remain outstanding.

Block recorded an accrual of $764 million as of 30 September 2026 and cautioned that final terms could lead to losses beyond the accrued amount and that no final resolution is guaranteed. The Securities and Exchange Commission told the company in March 2026 that it had ended its investigation without intending to recommend enforcement, while the Justice Department continued its own path.

The proposed resolution follows earlier action involving Cash App. In January 2025, the Conference of State Bank Supervisors announced a coordinated $80 million penalty involving 48 state regulators, and New York's Department of Financial Services imposed a consent order with a $40 million civil penalty in April 2025.

What do these terms mean?

Bank Secrecy Act: A U.S. law requiring financial institutions to keep records and report suspicious transactions to combat money laundering.

Deferred prosecution agreement: An agreement with prosecutors that postpones charges for a set period in exchange for the company meeting remedial conditions.

Anti-money-laundering: Measures that prevent the concealment of illegal funds or their entry into the financial system.

Accounting accrual: An amount a company records as an expected expense to cover a probable obligation or loss.