Toronto-Dominion Bank, commonly known as TD Bank, pleaded guilty Thursday to violating federal anti-money laundering and bank transparency laws, agreeing to pay more than $3 billion and restrict its future growth.
Canada-based TD Bank will pay billions of dollars in fines and fines to multiple federal agencies, including the Federal Reserve and the Office of the Comptroller of the Currency, federal officials announced.
TD Bank allegedly failed to properly supervise its retail banking operations, allowing its subsidiaries to potentially be used to launder hundreds of millions of dollars through drug trafficking.
“TD Bank created an environment in which financial crimes thrived by making its services convenient for criminals,” Attorney General Merrick Garland said at a Thursday afternoon press conference. ” he said.
The Justice Department has also charged 20 people with involvement in a money laundering scheme that moved more than $670 million in illicit funds through TD Bank accounts. Two TD employees were charged.
“Our laws state that drug traffickers who flood our communities with deadly drugs cannot use American financial institutions to move funds, and anti-money laundering laws. , which states that any bank that intentionally fails to protect itself from a criminal scheme is also a criminal. That was TD Bank,” Garland added.
Garland said the bank is the largest in U.S. history to plead guilty to charges under the Bank Secrecy Act and the first to plead guilty to money laundering conspiracy. The fine imposed against TD is the largest ever under the Bank Secrecy Act.
TD Bank's fine marks the first banking scandal since federal regulators imposed a $1 billion fine on Wells Fargo in 2018, in what became one of the biggest banking scandals since the 2007-2008 financial crisis and recession. It is also the highest amount ever paid.
Wells Fargo has also been subject to asset limits since February 2018, blocking the bank's growth by more than $1.95 trillion. TD Bank would be subject to similar restrictions, which could significantly hurt the bank's ability to compete with its competitors.
Updated at 1:43 p.m.
