Block Inc. has reached an agreement in principle with the U.S. Department of Justice on a three-year deferred prosecution agreement to resolve anti-money laundering compliance failures, carrying an expected total financial cost of $964 million and net payments of $764 million. The deal follows regulatory scrutiny over Cash App's transaction monitoring, delayed suspicious activity reports, and high-risk Bitcoin transfers, as well as $120 million in prior state enforcement penalties.
Deferred prosecution agreement with DOJ
- ▪The deferred prosecution agreement between Block Inc. and the Department of Justice places the company under federal supervision for three years, during which any compliance failure could reactivate the criminal money laundering charge
- ▪Block Inc.'s cooperation with federal regulators throughout the Justice Department's anti-money laundering investigation contributed to prosecutors offering a deferred prosecution agreement rather than pursuing an immediate criminal conviction
- ▪Block Inc. reached an agreement in principle with the U.S. Department of Justice on a three-year deferred prosecution agreement resolving a money laundering charge tied to anti-money laundering compliance program deficiencies
- ▪The three-year deferred prosecution agreement between Block Inc. and the U.S. Department of Justice requires court approval to become final
Financial impact of DOJ settlement
- ▪Block Inc. increased its anti-money laundering-related reserve from $526 million at the end of June 2026 to $764 million at the end of September 2026 to cover the expected Justice Department payment
- ▪The total financial cost tied to Block Inc.'s three-year deferred prosecution agreement with the U.S. Department of Justice is expected to be about $964 million, with an expected net payment of approximately $764 million
Cash App compliance and monitoring weaknesses
- ▪Regulators, including the U.S. Department of Justice, specifically cited high-risk transactions involving digital assets like Bitcoin as a key area of weakness in Cash App's anti-money laundering controls
- ▪Regulatory examinations of Cash App documented weak spots in transaction monitoring and customer due diligence under Bank Secrecy Act requirements
- ▪Cash App's compliance backlogs arose as rapid user growth between 2019 and 2020 outpaced the platform's transaction monitoring and customer due diligence capabilities
Prior state regulatory enforcement actions
- ▪In April 2025, the New York Department of Financial Services issued a consent order against Block Inc. with a $40 million penalty for Bank Secrecy Act and anti-money laundering violations
- ▪A multistate settlement finalized around July 2025 required Block Inc. to allocate approximately $80 million toward remediating anti-money laundering deficiencies uncovered during November 2023 examinations
Anti-money laundering fines at other banks
- ▪American Express was fined $350 million by U.S. financial authorities for failing to detect and report suspicious money laundering transactions
- ▪In October 2026, Bank of America was fined $1.21 billion for anti-money laundering and sanctions compliance violations, marking its largest regulatory fine in a decade
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