Last Updated on November 9, 2026 by Fintech On
American financial services giant and owner of payment companies Square and Cash App has reached an in-principle agreement with the US Department of Justice (DoJ) over anti-money laundering (AML) violations. The agreement, which includes a $764 million charge, submits that Block did not enforce its AML compliance program satisfactorily, thereby breaching the Bank Secrecy Act (BSA).
Under the agreement, the charge will be deferred for three years, after which prosecutors will ask the court to dismiss it with prejudice if Block meets all stipulated obligations during that period. The agreement is not binding and remains subject to final specifics agreed to by all parties, as well as court approval.
Block Received Several AML-Related Fines
Block disclosed these details in its quarterly filing with the US Securities and Exchange Commission (SEC), stating that it reached the agreement in October. It also noted that the gross monetary charge was approximately $964 million. However, the figure fell to $764 million after deductions for earlier settlements. Block has warned that it cannot guarantee the agreement based on the revealed terms.
In April, Block entered a separate agreement with the New York Department of Financial Services (NYDFS) under which the company paid $40 million for AML violations. Block also agreed to appoint an independent monitor for an extendable 12-month period.
In January, Block agreed to pay an $80 million fine to regulators in 48 US states over insufficient AML policies on its Cash App. A company spokesperson said the issues were connected to a previous compliance program and that Block has considerably improved its compliance and risk management.
Company Raises 2026 Profit Outlook
In its quarterly filing, Block raised its full-year gross profit outlook after a quarterly earnings increase boosted by Cash App. The app’s gross profit for the third quarter was 27% higher than the prior year. Square also reported a 14% increase in gross profit. Speaking in a recent Reuters interview, company Chief Financial Officer Amrita Ahuja said:
“We’ve seen continued strong spending on Cash App Cards as well as strong repayment rates on Borrow, which for us are the signals that collectively tell us consumers are managing their finances and the strength of their pocketbook.”
Block has diversified its focus, adding banking and lending products as revenue sources. However, the company recorded losses on consumer receivables, loans, and transactions, totaling $601.7 million, a 65.6% increase.
Nonetheless, Block says it expects a 22% rise in gross profit for 2026, reaching $12.63 billion. Its previous gross profit target was $12.51 billion. In addition, Block forecasts $3.32 billion in gross profit for Q4.
