News Desk · Enforcement

Block says it reached a DOJ deal in principle over alleged AML program failures, about $764M net

Block, the owner of Cash App and Square, disclosed an agreement in principle with the US Justice Department for a deferred prosecution agreement over an alleged failure to keep an effective anti-money laundering program, according to Reuters. The deal still needs a final agreement and court approval.

Developing storyEnforcementUS3 Nov 20262 min readUpdated 5 Nov 2026

Block, Inc., the company behind Cash App and Square, disclosed on 3 November 2026, alongside its third-quarter results, that it had reached an agreement in principle with the US Department of Justice (DOJ) in October, Reuters reported. An agreement in principle means the main terms are agreed but the final deal is not yet signed.

According to Reuters, the DOJ alleged that Block failed to maintain an effective anti-money laundering program, which would violate the Bank Secrecy Act, the main US AML law. Under the proposed deferred prosecution agreement, the charge would be deferred for three years. In a deferred prosecution agreement, prosecutors file a charge but agree not to pursue it if the company meets set conditions for an agreed period. Reuters reported that Block expects a net payment of about $764 million after credits for earlier regulatory resolutions. Bloomberg also reported, citing a Block regulatory filing, that the agreement includes a gross monetary component of about $964 million and a net payment of about $764 million, and that the charge would be deferred for three years.

Block said the resolution remains subject to a final agreement and court approval, according to Reuters. Block also warned that the final terms could lead to losses above the amount it has already set aside, Reuters reported. In its third-quarter shareholder letter filed with the SEC, Block said its general and administrative expenses rose on a GAAP basis (the standard US accounting rules) mainly because of increased accrued legal contingencies, and referred readers to the commitments and contingencies note in its quarterly report.

AMLift has not found a DOJ announcement of the agreement, and AMLift could not read the relevant section of Block's quarterly report (Form 10-Q). This account is based on Reuters' and Bloomberg's reporting of Block's disclosure and on Block's shareholder letter. The story is developing and will be updated when an official DOJ or court record is available.

Developing story. This account is based on reporting by established news organisations and on statements by the parties involved, as listed in the sources below. No regulator, court or government agency had published an official statement when it was written. Claims are attributed to the people or firms who made them, and the story will be updated as official information is released.

Why it matters to AML professionals

Payment apps that onboard large numbers of customers quickly face the same AML program expectations as banks. A deferred prosecution agreement over an AML program failure usually comes with conditions such as program improvements and ongoing oversight. AML professionals at fintechs and payment firms should expect closer scrutiny of how onboarding, monitoring and reporting keep pace with growth.

Red flags in this case

Accounts opened with minimal identity checks that quickly start sending or receiving high volumes of peer-to-peer payments
Many accounts linked by the same device, phone number or IP address
Rapid movement of funds in and out of an account with no clear personal or business purpose
Alert backlogs growing faster than the team can review them

If this landed in your queue

Check whether the customer's identity and risk profile were verified to the standard your program requires before activity grew
Review linked accounts through shared devices, contact details and counterparties
Compare transaction volume and patterns with the customer's stated purpose for the account
Escalate unexplained activity for a SAR decision and record the rationale

Key terms

Deferred prosecution agreement (DPA): An agreement where prosecutors file a charge but agree not to pursue it if the company meets set conditions for an agreed period.
Bank Secrecy Act (BSA): The main US anti-money laundering law, which requires covered firms to keep an effective AML program and report suspicious activity.
Agreement in principle: An agreement on the main terms of a deal before the final documents are signed.

Interview angle

What does an effective AML program mean for a fast-growing payments app?

Walk through the program pillars: internal controls (CDD, monitoring, reporting), a qualified BSA officer, training, and independent testing. Stress that controls must scale with customer growth, and give an example such as alert backlogs or weak onboarding checks.

Sources

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Every fact in AMLift News Desk stories comes from an official source: a regulator, court, government gazette or the company's own filing.