TD Bank will pay about $3 billion in a settlement with U.S. authorities over lax practices that facilitated money laundering.
The bank pleaded guilty to money laundering conspiracy, making it the largest money laundering bank in U.S. history.
The big picture: TD Bank’s senior executives recognized the money laundering problem but failed to address it, allowing criminals to exploit the system.
The Justice Department revealed that the bank allowed at least three money laundering networks to move a total of $670 million through TD Bank accounts. Multiple criminal activities, including drug trafficking, terrorist financing, and human trafficking, were facilitated by TD Bank’s policy flaws. TD Bank employees were involved in criminal activities, including working with criminal organizations to launder millions of dollars. The bank will undergo a major corporate compliance restructuring of its U.S. operations and will be subject to three years of supervision and five years of probation.
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