New York, Tuesday, September 10, 2024 – TD Bank is preparing to pay a $3 billion fine over its alleged involvement in a massive money laundering operation.
The U.S. banking giant has reportedly set aside $2.6 billion to resolve the accusations, which stem from the bank’s failure to flag $650 million in drug trafficking proceeds laundered through its systems between 2016 and 2021.
The investigation, involving U.S. regulators including the Department of Justice (DOJ), centers on the bank’s anti-money laundering (AML) program.
A former TD employee is accused of accepting bribes to facilitate these illegal transactions.
TD Bank, which has over $370 billion in assets, has acknowledged the shortcomings in its AML systems.
The bank said that rectifying these deficiencies is a priority for the it.
To offset the financial impact of the penalty, TD is selling part of its stake in Charles Schwab. The bank also reported $181 million in losses in the third quarter of 2024 due to the ongoing investigations.
TD Bank expects a global resolution of the regulatory probes by the end of this year.
This case underscores the growing regulatory pressure on banks to enforce strict anti-money laundering measures, particularly in light of increased scrutiny on financial institutions linked to drug trafficking operations.
