• Investing
  • Stock
Round Table Thoughts
  • Economy
  • Editor’s Pick
Home Editor's Pick TD Bank pleads guilty in money laundering case, will pay $3 billion in penalties
Editor's Pick

TD Bank pleads guilty in money laundering case, will pay $3 billion in penalties

by October 10, 2024
by October 10, 2024 0 comment
Share
0
FacebookTwitterPinterestWhatsapp

TD Bank pleaded guilty Thursday to multiple criminal charges and agreed to pay a whopping $3 billion in fines and other penalties to the Department of Justice and financial regulators for failing to monitor money laundering by drug traffickers and other criminals.

As part of the deal, TD Bank, whose U.S. unit is the 10th-largest American bank by assets, also will have limits to its growth imposed by the Office of the Comptroller of the Currency. The total assets of TD Bank’s two U.S. banking subsidiaries will be barred from exceeding $434 billion under that restriction.

The restrictions are similar to those imposed by the Federal Reserve on Wells Fargo in 2018 over what the Federal Reserve called “widespread consumer abuses” at that bank.

“By making its services convenient for criminals, TD Bank became one,” said Attorney General Merrick Garland on Thursday.

“Today, TD Bank also became the largest bank in U.S. history to plead guilty to Bank Secrecy Act program failures, and the first US bank in history to plead guilty to conspiracy to commit money laundering,” Garland said.

“TD Bank chose profits over compliance with the law — a decision that is now costing the bank billions of dollars in penalties. Let me be clear: our investigation continues, and no individual involved in TD Bank’s illegal conduct is off limits.”Garland, speaking at a press conference in Washington, D.C., said a monitor would oversee the bank’s compliance with anti-money-laundering practices for three years as part of a settlement with the DOJ, which is receiving $1.8 billion in connection with the bank’s guilty plea in federal court in Newark, New Jersey.

The attorney general said that over a six-year period that ended last October, TD Bank admittedly failed to monitor a stunning $18.3 trillion in customer activity, which allowed three money laundering networks to transfer more than $670 million through accounts at the bank.

At least one of those schemes involved five bank employees, Garland said.

“At various times, high-level executives, including the person who became the bank’s chief anti-money laundering officer, knew there were serious problems with the bank’s anti-money laundering program, but the bank failed to correct them,” the attorney general said.

Garland read reporters details of electronic messages which showed the awareness and concerns bank employees had about suspicious transactions about one individual, known as David, who personally moved more than $470 million in illicit funds through TD Bank branches in the United States.

“In August 2021, a TD Bank store manager emailed another store manager and remarked, quote, ‘You guys really need to shut this down. Lol,’ ” Garland noted.

“In February 2021, one TD Bank store employee saw that David’s network had purchased more than $1 million in official bank checks with cash in a single day,” Garland said. “The employee asked, quote, how is that not money laundering a bank off a back office?′ ”

Another TD Bank “employee responded, quote, ‘Oh, it 100% is,’ ” Garland said.

Garland said the DOJ expected to file other prosecutions in the case.

When asked if that meant charging TD Bank executives, the attorney general said, “My general response to these kind of questions is, we don’t comment on ongoing investigations, but I was indicating that we would expect future cases against individuals.”

As part of Thursday’s settlement, TD Bank, which is the second largest bank in Canada, will pay $1.3 billion to the Treasury Department’s Finacial Crimes Enforcement Network, the largest such penalty ever imposed by FinCEN or Treasury on a depository institution.

FinCEN also has imposed a four-year independent monitorship on TD Bank to oversee required remediation of its practices.

“The vast majority of financial institutions have partnered with FinCEN to protect the integrity of the U.S. financial system,” said Deputy Treasury Secretary Wally Adeyemo. “TD Bank did the opposite.”

“From fentanyl and narcotics trafficking, to terrorist financing and human trafficking, TD Bank’s chronic failures provided fertile ground for a host of illicit activity to penetrate our financial system,” Adeymo said.

The Wall Street Journal reported in May that the DOJ was investigating how Chinese organized crime groups and drug traffickers used TD Bank to launder money derived from the sale of the deadly opiate fentanyl in the United States.

The Federal Reserve Board on Thursday fined TD Bank more than $124 million for violations related to anti-money laundering laws, saying the bank failed to “conduct adequate risk management and oversight of its retail banking operations in the United States, resulting in a U.S. subsidiary being used to launder hundreds of millions of dollars in illicit proceeds.”

Sen. Elizabeth Warren, D-Mass., in a statement to CNBC blasted Thursday’s deal.

“Big banks treat government fines as the cost of doing business,” Warren said.

“This settlement lets bad bank executives off the hook for allowing TD Bank to be used as a criminal slush fund. The Department of Justice and the Office of the Comptroller of the Currency need to do better in enforcing our anti-money laundering laws,” Warren said.

In a statement, TD Bank Group CEO Bharat Masrani said, “We have taken full responsibility for the failures of our U.S. AML program and are making the investments, changes and enhancements required to deliver on our commitments.”

“This is a difficult chapter in our Bank’s history. These failures took place on my watch as CEO and I apologize to all our stakeholders,” Masrani said.

TD Bank shares were down more than 5% on Thursday afternoon.

In September, TD Bank was ordered to pay nearly $28 million by the Consumer Financial Protection Bureau for repeatedly furnishing consumer reporting agencies with information about customers that contained numerous errors, and waiting more than a year to fix those mistakes despite knowing about them.

This is a developing story. Check back for updates.

This post appeared first on NBC NEWS
You Might Also Like
  • Traders see the odds of a Fed rate cut by September at 100%
  • Taylor Swift agreed to FTX partnership, but the crypto exchange bailed, source tells CNBC
  • Joann Fabrics and Crafts files for Chapter 11 bankruptcy
  • Boeing’s Starliner losses top $2 billion after spacecraft program reports worst year yet
Share
0
FacebookTwitterPinterestWhatsapp

previous post
DOJ and FTC warn consumers of fraud and price gouging risks ahead of Hurricane Milton
next post
AMD launches AI chip to rival Nvidia’s Blackwell

You may also like

McDonald’s plans to eliminate self-service soda stations at all its...

September 13, 2023

Microsoft to roll out new autonomous AI agents next month,...

October 22, 2024

The installed base of fleet management systems in Europe will...

December 16, 2022

Biden administration bans noncompete agreements, setting up legal showdown with...

April 24, 2024

Laid-off tech workers turn to LinkedIn, therapy and one another...

March 13, 2024

Open seating no more? Southwest CEO says airline is weighing...

April 27, 2024

Tax Day 2023: What to know about the April 18...

April 20, 2023

Bitcoin prices hit all-time high, soaring to nearly $69,000

March 7, 2024

McDonald’s revenue disappoints, as U.S. sales see worst drop since...

February 11, 2025

The Fed may soon cut interest rates. That could make...

July 11, 2024

    Stay updated with the latest news, exclusive offers, and special promotions. Sign up now and be the first to know! As a member, you'll receive curated content, insider tips, and invitations to exclusive events. Don't miss out on being part of something special.


    By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

    Recent Posts

    • Week Ahead: NIFTY Stays In A Defined Range; Moving Past This Level Crucial For Resumption Of Upmove

      May 31, 2025
    • Breakouts, Momentum & Moving Averages: 10 Must-See Stock Charts Right Now

      May 31, 2025
    • Leadership Rotation Could Confirm Corrective Phase

      May 30, 2025
    • Run Your Stock Portfolio Like a Pro Sports Team

      May 30, 2025
    • U.S. foreign tax bill sends jitters across Wall Street

      May 30, 2025

    Popular Posts

    • 1

      Trump-era China sanctions ended by Biden may be...

      June 27, 2024 2,765 views
    • 2

      Walz’s honeymoon with China gets fresh scrutiny as...

      August 9, 2024 2,472 views
    • 3

      Biden appointee played key role in recruiting Chinese...

      June 25, 2024 2,451 views
    • 4

      Shein’s global ambitions leaves some cybersecurity experts fearful...

      July 10, 2024 2,432 views
    • 5

      Harris VP pick spent years promoting research facility...

      August 29, 2024 2,308 views

    Categories

    • Economy (7,009)
    • Editor's Pick (2,106)
    • Investing (538)
    • Stock (2,582)

    Popular Posts

    • 1

      Trump-era China sanctions ended by Biden may be revived under new House GOP bill

      June 27, 2024
    • 2

      Walz’s honeymoon with China gets fresh scrutiny as Harris camp blasts ‘lying’ critics

      August 9, 2024
    • 3

      Biden appointee played key role in recruiting Chinese businesses to Delaware: ‘Longtime friends’

      June 25, 2024
    • 4

      Shein’s global ambitions leaves some cybersecurity experts fearful of Chinese spy threats

      July 10, 2024
    • 5

      Harris VP pick spent years promoting research facility that collaborated with ‘Chinese military company’

      August 29, 2024

    Latest News

    • Week Ahead: NIFTY Stays In A Defined Range; Moving Past...

      May 31, 2025
    • Breakouts, Momentum & Moving Averages: 10 Must-See Stock Charts Right...

      May 31, 2025
    • Leadership Rotation Could Confirm Corrective Phase

      May 30, 2025

    Categories

    • Economy (7,009)
    • Editor's Pick (2,106)
    • Investing (538)
    • Stock (2,582)

    Disclaimer: RoundTableThoughts.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2024 RoundTableThoughts.com. All Rights Reserved.

    Round Table Thoughts
    • Investing
    • Stock
    Round Table Thoughts
    • Economy
    • Editor’s Pick

    Read alsox

    As Joann Fabrics and JCPenney announce...

    February 17, 2025

    Semtech Unveils New Brand Reflecting Company’s...

    March 10, 2023

    OpenAI is done with Shipmas and...

    December 20, 2024
    Sign In

    Keep me signed in until I sign out

    Forgot your password?

    Password Recovery

    A new password will be emailed to you.

    Have received a new password? Login here