TD Bank to Pay $3 Billion, Plead Guilty, Faces US Asset Cap Over Money-Laundering Failures

Oct 10, 2024, 08:24 AM

Toronto-Dominion Bank is expected to pay about $3 billion in penalties and accept limits on its US growth as part of a settlement with US regulators and prosecutors over charges that it failed to properly monitor money laundering by drug cartels. The settlement, which is expected to be announced on Thursday, includes an asset cap on TD Bank's US retail banking unit, hindering its ability to grow through acquisitions. Two of TD Bank's US units are expected to plead guilty to money-laundering charges, acknowledging that the bank failed to build proper anti-money-laundering systems. Following reports of the impending settlement, TD Bank shares fell sharply.