Block Discloses $764 Million Net Reserve for DOJ AML Settlement
The payments company recorded a net reserve of $764 million for a proposed deferred prosecution agreement over Bank Secrecy Act violations.
Block, Inc. disclosed in its third-quarter 2026 regulatory filing, published on 3 November 2026, an agreement in principle with the United States Department of Justice concerning violations of the Bank Secrecy Act linked to an ineffective anti-money-laundering program. Under the proposed deferred prosecution agreement, the charges would be dismissed after three years of compliance. The company recorded a net reserve of $764 million as of 30 September 2026, covering an estimated gross payment of approximately $964 million, which includes a $200 million credit from a previously announced regulatory settlement.
The filing states that losses may exceed the recorded reserve. The disclosure follows a separate settlement with the New York Department of Financial Services in April 2025, under which Block paid $40 million and accepted an independent monitor.
The case provides a publicly quantified reference point for the cost of AML program failures. In a related development, OJK stated on 5 November 2026 that it has asked banks to conduct enhanced due diligence on approximately 39,923 accounts indicated as linked to online gambling, up from 38,796 previously.