Block Discloses Proposed $764M DOJ Payment in U.S. AML Case

Block disclosed a proposed $764 million net payment to the U.S. Department of Justice as part of a three-year deferred prosecution agreement, a potential resolution of an alleged Bank Secrecy Act violation that still needs court approval.

The agreement in principle was reached in October. Its gross monetary component is about $964 million, reduced by credits for earlier regulatory resolutions to an expected net payment of about $764 million. Block had accrued $764 million as of Sept. 30, 2026.

Under the proposed terms, the Justice Department would defer a charge for three years. If Block fulfills its obligations, the department would move to dismiss the charge with prejudice.

Block said it cannot guarantee the agreement will be finalized on those terms, or at all, and that losses could exceed the amount accrued. Block’s filing says the DOJ and Securities and Exchange Commission inquiries began shortly after a short-seller report in March 2023 and concerned allegations about the company’s compliance, risk practices and related disclosures. Block described the deferred charge as an alleged failure to maintain an effective anti-money laundering program under the Bank Secrecy Act.