Official announcements from the U.S. Department of Justice or other legal authorities

TD Bank Fined Record $3 Billion, Admits Money Laundering for Drug Cartels and Crypto Transactions

Oct 14, 2024, 02:53 PM

TD Bank has agreed to pay a record $3 billion penalty after pleading guilty to charges of conspiracy to commit money laundering and failing to maintain adequate anti-money laundering controls. The U.S. Department of Justice announced that TD Bank is the largest bank in U.S. history to plead guilty under the Bank Secrecy Act, and the fine is the largest ever imposed under this act. The bank admitted to processing billions of dollars in transactions for drug cartels and high-risk clients without proper monitoring, including over $420 million in cryptocurrency transactions to service providers in high-risk regions such as Colombia. Some employees were bribed with $57,000 in gift cards to allow the transfer of $470 million from fentanyl and other drug sales, and the bank failed to monitor 92% of its transactions between 2018 and 2024, amounting to $18.3 trillion. TD Bank also processed suspicious payments related to human trafficking via Zelle, ATM, and ACH transfers. Despite multiple warnings and internal failures, no individuals have been charged in connection with the case, raising concerns about accountability in the financial industry and damaging the reputation of Canada's banking system.