TD Bank’s American arm reportedly plans to plead guilty to anti-money laundering failures.
The Wall Street Journal (WSJ) reported late Wednesday (October 9) that the Toronto-based bank will pay about $3 billion in fines and agree to limits on its growth in the United States as part of a plea deal. It was reported.
Under the plea agreement, the Office of the Comptroller of the Currency will impose an asset cap that would prevent TD’s retail operations from expanding beyond a certain level in the United States, people familiar with the matter told the Journal.
In addition, the Justice Department and Treasury Department’s Financial Crimes Enforcement Network (FinCEN) plans to establish an independent monitor to monitor banks and ensure compliance with the agreement, the people said. A source told the Journal that the FinCEN monitoring system is expected to be in place for four years.
According to WSJ sources, the maximum amount of the fine (approximately $1.8 billion) will be paid to the Department of Justice, while FinCEN will receive $1.3 billion. The petition could be announced as early as Thursday (October 10), according to reports.
PYMNTS has reached out to TD for comment, but has not yet received a response.
The U.S. Department of Justice has learned that Chinese criminal operations laundered hundreds of millions of dollars from drug trafficking through the bank’s branches in New York and New Jersey, while also bribing TD employees. (AML) practices.
The bank said it has since taken steps to improve its AML protections. The incident also led to the resignation of president and CEO Bharat Masrani, who is retiring next year.
“The anti-money laundering challenges we face occurred on my watch as CEO, and I take full responsibility for them,” Masrani said in a statement announcing his departure. “Over the coming months, I will continue to fulfill my duties and responsibilities and drive and lead the important remediation programs needed to strengthen our risk and control foundations.”
As PYMNTS wrote earlier this year, the lawsuit against TD comes amid increased scrutiny of AML practices in the financial world.
“And if these companies, banks and fintechs are deemed short-changed, they will have to pay a (literal) price,” the report said. “Meanwhile, a comment period is underway as regulators seek input on the use of advanced technology to strengthen financial institutions’ fraud defenses, as rules governing AML and fraud-fighting efforts are underway. itself may change.”
More information: AML, Anti-Money Laundering, Banking, Banks, Financial Crimes Enforcement Network, FinCEN, Department of Justice, Money Laundering, News, Office of the Comptroller of the Currency, PYMNTS News, TD Bank, Latest News
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