TD Bank in Brooklyn, New York City on June 4, 2024.
Spencer Pratt | Getty Images
TD Bank begged guilty On Thursday, it filed multiple criminal charges and agreed to pay a hefty $3 billion in fines and other penalties. Ministry of Justice and financial regulators who failed to monitor money laundering by drug traffickers and other criminals.
As part of the partnership, it partnered with TD Bank, whose U.S. division ranks No. 10. american bank There may also be limits to growth depending on assets. Office of the Comptroller of the Currency. The restrictions would prohibit TD Bank’s two U.S. banking subsidiaries from having total assets of more than $434 billion.
This limit is similar to that imposed by the Federal Reserve. wells fargo In 2018, the Federal Reserve filed a lawsuit over what it called “pervasive consumer abuse” at the bank.
“TD Bank has aligned itself with criminals by providing services that are convenient for them,” Attorney General Merrick Garland said Thursday.
“Today, TD Bank also became the largest bank in U.S. history to plead guilty to failing Bank Secrecy Act programs and the first U.S. bank in history to plead guilty to money laundering conspiracy,” Garland said. said.
“TD Bank chose profits over compliance with the law. As a result of this decision, the bank is now facing billions of dollars in fines. To be clear, our investigation continues and TD Bank Individuals involved in bank misconduct are prohibited.”
U.S. Attorney General Merrick Garland speaks about TD Bank’s guilty plea for failing to crack down on money laundering by drug cartels during a press conference at the Department of Justice in Washington, DC, October 10, 2024.
Saul Loeb | AFP | Getty Images
Garland said at a news conference in Washington, D.C., that as part of a settlement with the Justice Department in which the bank received $1.8 billion in connection with the bank’s convictions, watchdogs will be required to monitor the bank’s compliance with anti-money laundering practices for three years. He said he would monitor it. Plead in federal court in Newark, New Jersey.
The attorney general acknowledged that TD Bank failed to monitor an astonishing $18.3 trillion in customer activity over the six-year period ending last October, resulting in three money laundering networks operating six funds through the bank’s accounts. He said he was able to transfer more than $70 million.
Garland said at least one of the schemes involved five bank employees.
“Senior executives, including the person who became the bank’s chief anti-money laundering officer, have repeatedly identified serious problems with the bank’s anti-money laundering program, which the bank has resolved to correct.” I couldn’t do it.” the attorney general said.
Garland details electronic messages indicating bank employees were aware of and concerned about suspicious transactions by a person named David, who personally moved more than $470 million in illegal funds through TD Bank branches in the United States. was read aloud to reporters.
“In August 2021, a TD Bank store manager emailed another store manager and said, ‘Guys, we really need to close, lol,'” Garland noted.
“In February 2021, one of our TD Bank store employees witnessed David’s network purchasing over $1 million in official checks in cash in one day,” Garland said. “The employee asked if there was no way the bank was not laundering money from the back office.”
At another TD Bank, “employees said, ‘Oh, that’s 100% true,'” Garland said.
Garland said the Justice Department plans to file separate charges in the case.
Asked whether that meant charges against TD Bank executives, the attorney general said, “My general answer to these types of questions is that I don’t comment on ongoing investigations, but that I don’t want to comment on future investigations against individuals.” He indicated that a lawsuit is expected.”
As part of Thursday’s settlement, TD Bank, Canada’s second-largest bank, will pay $1.3 billion to the Treasury Department. Financial Crimes Enforcement Networkor FinCEN, is the largest fine of its kind ever imposed on a depository financial institution by FinCEN or the Treasury Department.
FinCEN also imposed a four-year independent oversight period on TD Bank to oversee any necessary practice corrections.
Deputy Treasury Secretary Wally Adeyamo speaks during a press conference at the Department of Justice on October 10, 2024 in Washington, DC. us
Andrew Harnik | Getty Images
“The vast majority of financial institutions partner with FinCEN to protect the integrity of America’s financial system,” said Wally Adeyemo, Deputy Secretary of the Treasury. “TD Bank did the opposite.”
“TD Bank’s chronic failures, from fentanyl and drug trafficking to terrorist financing and human trafficking, have provided fertile ground for a host of illegal activities to enter our nation’s financial system,” Adeyemo said. .
The Wall Street Journal reported in May that the Justice Department was investigating the method. Chinese organized crime group And drug traffickers used TD Bank to launder money from sales of the deadly opiate drug fentanyl in the United States.
of Federal Reserve Board TD Bank on Thursday fined TD Bank more than $124 million for violations related to anti-money laundering laws. The bank said it “failed to properly manage and supervise its retail banking operations in the United States, which resulted in its U.S. subsidiary being used to commit fraud.” Laundering hundreds of millions of dollars in illegal profits. ”
Sen. Elizabeth Warren (D-Mass.) condemned Thursday’s agreement in a statement to CNBC.
“Big banks treat government fines as a cost of doing business,” Warren said.
“This settlement exonerates unscrupulous bank executives who allowed TD Bank to serve as a slush fund for crimes. The Department of Justice and the Office of the Comptroller of the Currency must step up enforcement of anti-money laundering laws,” Warren said. spoke.
“This is a sad day in our history,” said TD Bank Group CEO Bharat Masrani.
“We take full responsibility for the failures of America’s AML programs and are making the investments, changes, and enhancements necessary to deliver on our commitments,” Masrani said.
“This is a difficult chapter in our bank’s history. These failures occurred under my watch as CEO, and I apologize to all stakeholders,” Masrani said.
TD Bank stock fell more than 5% on Thursday afternoon.
In September, TD Bank was ordered by the Department of Justice to pay approximately $28 million. Consumer Financial Protection Bureau For repeatedly providing information about customers to consumer reporting agencies that contained numerous errors and waiting more than a year to correct those errors, even though he knew about them.
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