A U.S. senator is raising concerns that TB Bank Group executives did not face charges as part of the bank’s settlement over its failure to detect large-scale money laundering.
Sen. Elizabeth Warren says in a letter to the U.S. attorney general that the settlement, which included more than US$3 billion in fines and a cap on asset growth, failed to hold corporate executives accountable.
Warren says both executives and the bank itself were able to escape the full scope of penalties that Congress could have levied, despite allowing the bank “to act as a criminal slush fund and hurt hundreds of thousands of people.”
TD’s failure on money laundering controls allowed criminals to launder more than US$670 million through the bank over six years, including profits from fentanyl trafficking.
Warren says unless executives are held accountable, banks will continue to factor enforcement fines into the cost of doing business, rather than approaching compliance with money laundering laws with the seriousness it requires.
TD declined to comment.
