the staff of the Ridgewood blog
Ridgewood NJ, Toronto-Dominion Bank (TD Bank) has pleaded guilty to violating federal anti-money laundering (AML) and transparency laws, agreeing to pay over $3 billion in fines and penalties. The settlement, announced by U.S. federal officials, includes payments to several agencies such as the Federal Reserve and the Office of the Comptroller of the Currency (OCC). This marks one of the largest financial penalties in U.S. history for a bank’s role in enabling money laundering.
The charges stem from TD Bank’s failure to adequately monitor $18.3 trillion in customer transactions over six years, which allowed money laundering networks connected to drug trafficking to move millions of dollars through its accounts. According to U.S. Attorney General Merrick Garland, the bank’s lack of oversight created an environment where financial crimes could “flourish,” ultimately leading to TD Bank becoming a facilitator for illegal activities.
“TD Bank created an environment that allowed financial crimes to flourish. By making its services convenient for criminals, it became one,” Garland said during a press conference.
The Investigation and Charges
The U.S. Department of Justice (DOJ) has been investigating TD Bank’s role in laundering over $670 million in illegal funds through its U.S. branches. The investigation has led to charges against two dozen individuals involved in the money-laundering schemes, including two TD Bank employees who were directly implicated. One scheme moved over $470 million through TD Bank branches, with criminals bribing bank employees with gift cards.
In another instance, five TD employees collaborated with criminal organizations to launder $39 million in drug money to Colombia. Despite internal warnings, TD Bank failed to detect its employees’ involvement until law enforcement made arrests.
The DOJ revealed that between January 2018 and April 2024, 92% of TD Bank’s transactions went unmonitored, allowing for large sums of illicit funds to flow through its system unchecked.
Historic Penalties and Future Restrictions
As part of the guilty plea, TD Bank will face stringent penalties, including capping its total assets at $434 billion—the value as of September 30, 2024. The asset cap could be reduced by 7% each year if the bank fails to comply with further conditions. Additionally, TD Bank must seek OCC approval for new branches, products, or services, and relocate its U.S. anti-money laundering compliance operations to the United States.
This penalty is the largest ever under the Bank Secrecy Act and marks the first time a bank has pleaded guilty to conspiracy to commit money laundering. The settlement follows similar penalties imposed on Wells Fargo in 2018, signaling increased scrutiny on large financial institutions regarding compliance and transparency.
TD Bank’s Response
TD Bank Group President and CEO Bharat Masrani took full responsibility for the oversight failures, apologizing to stakeholders and pledging to improve the bank’s AML program. In a statement, Masrani acknowledged that this is a difficult chapter in the bank’s history, stating, “We have taken full responsibility for the failures of our U.S. AML program and are making the investments, changes, and enhancements required to deliver on our commitments.”
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Shut them down and put the offenders in jail.
Nah. What constitutes a financial crime is a matter of opinion.
I liked it better when it was Commerce bank
It was even better when it was Independence Bank
Another criminal bank violating the law with nobody going to jail
3B is the cost of doing business for these assholes.