TD Bank agreed on Thursday to pay $3 billion in a historic settlement with U.S. authorities after pleading guilty to money laundering charges related to its failure to prevent systemic financial crimes over nearly a decade. The Justice Department reported that the bank’s lax anti-money laundering policies enabled drug cartels to launder significant amounts of money, with over 90% of transactions unmonitored during certain periods.
“TD Bank created an environment that allowed financial crime to flourish,” US Attorney General Merrick Garland said in a press conference announcing the settlement. “By making its services convenient for criminals, it became one.”
AG Garland: "By making its services convenient for criminals, it became one. Today, TD Bank became the largest bank in U.S. history to plead guilty to Bank Secrecy Act Program failures and the first bank in history to plead guilty to conspiracy to commit money laundering." pic.twitter.com/5tF3EbRxj8
— CSPAN (@cspan) October 10, 2024
“From fentanyl and narcotics trafficking, to terrorist financing and human trafficking, TD Bank’s chronic failures provided fertile ground for a host of illicit activity to penetrate our financial system,” Deputy Secretary of the Treasury Wally Adeyemo continued.
The investigation into this money laundering operation is ongoing and has led to the arrest and prosecution of two dozen people, including two TD Bank employees.
Learn more about the all-new VT News and subscribe today!
This settlement marks the largest fine ever imposed on a bank for violating anti-money laundering laws, surpassing HSBC’s previous record.
In addition to the hefty fines, TD Bank will face an asset cap that limits its growth in the U.S. market, a rare regulatory action. The bank has also committed to independent monitoring and has taken steps to enhance its compliance programs following the investigation.
CEO Bharat Masrani expressed regret over the bank’s failures and emphasized the importance of addressing these serious deficiencies.
“We know what the issues are, we are fixing them. As we move forward, we’re ensuring that this never happens again,” Masrani said. “And I’m 100% confident that we get to the other side and emerge even stronger.”
Connor Walcott is the lead writer for Valuetainment.com. Follow Connor on X and look for him on VT’s “The Unusual Suspects.”
Got a hot scoop or an idea for a story? Connect with the VT writers on Minnect!
Add comment