Shocking: TD Bank Fined $3 Billion for Massive Money-Laundering Scheme by Justice Department

A Landmark Settlement: TD Bank to Pay $3 Billion in Money Laundering Case

In a groundbreaking settlement with U.S. authorities, TD Bank has agreed to pay roughly $3 billion for its role in facilitating significant money laundering activities over several years. This enforcement action marks a significant milestone in financial regulation, holding one of the largest U.S. banks accountable for its lax practices that enabled illicit financial activities.

Highlighted points from the case:

1. Guilty Plea: TD Bank, a Canada-based financial institution, pleaded guilty to conspiracy to commit money laundering. This admission of guilt makes it the largest bank in U.S. history to do so, as announced by Attorney General Merrick Garland.
2. Lax Practices: High-level executives at TD Bank were made aware of serious deficiencies in the bank’s anti-money laundering program but failed to address them. Employees reportedly joked about the ease with which criminals could launder money through the bank, creating an environment conducive to financial crime.
3. Reform Efforts: The bank’s CEO, Bharat Masrani, expressed full accountability for the situation and stated that the company is actively cooperating with the investigation. TD Bank has initiated corrective measures, such as appointing new leadership and hiring additional specialists, to enhance its U.S. anti-money laundering program.
4. Money Laundering Networks: The Justice Department revealed that TD Bank facilitated the movement of at least $670 million through its accounts for multiple money laundering networks. Various illicit activities, including drug trafficking, terrorist financing, and human trafficking, were enabled by the bank’s systemic failures.
5. Compliance Violations: Several instances of blatant compliance violations occurred at TD Bank. These included employees accepting bribes to assist in money laundering schemes, large cash deposits exceeding limits, and oversight failures in detecting suspicious activities.

The Way Forward:

TD Bank has committed to a major restructuring of its corporate compliance program in its U.S. operations, along with three years of monitoring and five years of probation. As the bank endeavors to rectify its anti-money laundering shortcomings, it aims to emerge stronger and prevent such lapses from recurring in the future.

This significant enforcement action underscores the crucial role financial institutions play in upholding the integrity of the global financial system. By holding banks accountable for their shortcomings and ensuring robust anti-money laundering measures, authorities aim to safeguard against illicit financial activities that pose a threat to the stability of the financial system.