Toronto-Dominion Bank is facing fines totalling about US$3.09 billion from U.S. regulators after pleading guilty to multiple charges including conspiracy to violate the Bank Secrecy Act and commit money laundering.
The bank also received a cease-and-desist order and non-financial sanctions from the Office of the Comptroller of the Currency that put limits on its growth in the U.S. after it was found that TD had “significant, systemic breakdowns” related to its anti-money laundering safeguards.
U.S. Attorney General Merrick Garland says TD created an environment “that allowed financial crime to flourish by making its services convenient for criminals.”
He says TD admitted in its plea agreement it allowed three money-laundering networks to transfer more than US$670 million through TD Bank accounts over a six-year period.
At least one of those schemes involved five TD Bank employees.
Last month, outgoing chief executive Bharat Masrani said the shortcomings were his to bear as the bank announced Raymond Chun will replace him upon his retirement next year.
