TD Bank It is reported that a lawsuit related to anti-money laundering measures is imminent.
The Canadian bank is in talks with U.S. prosecutors over the deal, which stems from criminal charges that its U.S. unit failed to stop money laundering, The Wall Street Journal reported. reported Friday (September 27).
The petition could be filed within the next two weeks, the report said, citing people familiar with the matter. Sources said authorities have accused banks of being reckless in failing to establish adequate anti-money laundering measures.
The report finds that Chinese criminal operations laundered hundreds of millions of dollars in drug sales through the bank's branches in New York and New Jersey and bribed TD employees, prompting the U.S. Department of Justice to improve TD's money laundering regulations. He pointed out that he had started an investigation.
PYMNTS has reached out to TD for comment, but has not yet received a response.
The quarterly results announced by TD last month are showed reserves of $2.6 billion. It relates to a possible investigation into the company's anti-money laundering (AML) program. This followed a $450 million provision announced by the bank last quarter.
The bank said it is working on “.“Repair” of AML programs In light of a federal investigation. The bank fired more than a dozen employees earlier this year and filed criminal charges and disciplinary action against some employees.
And, as PYMNTS wrote earlier this summer, these actions come amid increased scrutiny of AML practices at financial companies.
“And where are these companies, banks, fintech companies? seems to be lackingThere is a (literal) price to be paid,” the report states. “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. That may change.”
Meanwhile, earlier this month, the bank's president and CEO announced: Bharat Masrani intention Retired in April Raymond Chun, currently group head of Canadian personal banking, will take over 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.”
The executive had led the bank for more than 10 years and had been with TD for nearly 40 years. He will continue to serve as an advisor to the bank until October 31, 2025.
