Block proposes $764 million DOJ payment over anti-money-laundering allegations

Block, the payments company behind Cash App and Square, has reached an agreement in principle with the US Department of Justice to resolve allegations that it failed to maintain an effective anti-money-laundering programme under the Bank Secrecy Act.

According to a third-quarter Form 10-Q filing, the proposed resolution involves a gross monetary component of approximately $964 million. After applying credits from earlier regulatory resolutions, the company expects a net payment of roughly $764 million. The proposed deferred prosecution agreement would involve prosecutors deferring the relevant charge for three years. If Block complies with all obligations within that term, the DOJ would seek to dismiss the charge.

The resolution remains subject to a final agreement and judicial approval. Block noted that it cannot guarantee final terms will be reached and cautioned that potential losses could exceed the amount currently accrued.