Block Reaches Agreement in Principle with U.S. DOJ on AML Investigation, Expected to Pay $764 Million

TechFlow reported on November 4 that, according to filings Block submitted to the U.S. Securities and Exchange Commission (SEC), the company reached an agreement in principle with the U.S. Department of Justice (DOJ) in October regarding the anti-money laundering investigation and plans to resolve the matter through a deferred prosecution agreement.

Under the proposed arrangement, the DOJ will defer prosecution for three years on allegations that the company failed to maintain an effective anti-money laundering program under the Bank Secrecy Act; if the company fulfills its obligations under the agreement, the DOJ will seek to permanently dismiss the relevant charges. The agreement is expected to involve a total amount of approximately $964 million, with about $764 million payable after offsetting prior regulatory settlements.

Block said the arrangement remains subject to final agreements among the parties and court approval; as of September 30, the company had accrued $764 million for this matter.

Source: TechFlow