Official announcements from TD Bank or industry reports

TD Bank to Pay $3 Billion in Largest Ever Penalty, Face U.S. Growth Limits in Money Laundering Settlement

Oct 10, 2024, 05:03 PM

Toronto-Dominion Bank (TD Bank) is set to pay $3 billion in penalties and accept growth restrictions in the U.S. as part of a settlement with regulators and prosecutors. The penalties relate to charges that TD Bank failed to properly monitor money laundering activities by drug cartels. As part of the settlement, TD Bank will also face an asset cap, limiting its ability to open new branches or offer new services until compliance issues are resolved. The settlement marks the largest penalty ever imposed by U.S. officials on a bank for violating anti-money laundering laws. Two of TD Bank's U.S. units will plead guilty to criminal charges. The Department of Justice cited systemic deficiencies in the bank's anti-money laundering systems, which allowed three money laundering networks to transfer over $670 million through TD accounts. TD Bank's stock has seen a significant drop in response to the news. The bank's failures enabled drug trafficking and violated the Bank Secrecy Act.