TD Bank, the seventh largest bank in America, is set to close 38 branches in the upcoming weeks, a move tied to hefty penalties for not addressing money laundering controls properly.
On June 5, the bank notified the Secretary of Currency (OCC) about the closures happening across ten states.
The closures will affect six branches in both New Jersey and Massachusetts, five in New York, four in New Hampshire and Maine, and three in Pennsylvania and Florida.
Among its roughly 1,100 branches nationwide, locations in Connecticut, Virginia, and South Carolina will also see closures, along with two in Washington, D.C.
This trend of branch closures isn’t isolated; many banks are shutting down locations across the U.S., leaving communities without essential services. Experts believe that 2025 may see the highest number of closures yet.
As the seventh-largest bank by branch count and tenth by managed assets, TD Bank’s decisions could lead to job losses for some branch employees.
The bank has been looking to cut costs after concluding an investigation that led to a $3.2 billion fine for violations related to anti-money laundering compliance.
According to the findings, TD’s compliance failures inadvertently allowed criminals to launder money connected to drug trafficking.
Reports indicate that drug traffickers were able to cover their activities through employees in several branches.
TD Bank has notably become the largest bank in U.S. history to admit guilt in violating federal anti-money laundering laws, which resulted in strict restrictions on its assets and business operations.
In February, Raymond Chun was appointed as the new CEO, taking over from Bharat Masrani.
When asked if the branch closures were part of a cost-cutting strategy, the bank didn’t provide a clear answer but highlighted its regular evaluations of store networks to ensure good customer service through accessible locations and effective digital banking services.
This situation follows a trend earlier this year when U.S. banks announced the closing of 42 branches in less than a month.
Between April 1 and April 26, major banks, including Bank of America and Chase, were noted among 14 lenders that communicated branch closures. Banks are required to inform the OCC prior to shutting down branches, and the agency subsequently publishes the applications in its weekly report, although this doesn’t indicate final decisions.
Last year, TD Bank closed a total of 1,043 branches, and a forecast suggests a further decline in 2025, with an anticipated drop of 4.11% by the year’s end, based on a recent study.
Despite the increasing shift towards a cashless society, many Americans still rely on their local bank branches. Research indicates that about 45% of Americans prefer in-person banking, highlighting longer wait times due to fewer branches.
As Andrew Murray from Gobankingrates noted earlier this year, public concerns are growing over the rapid closure of physical bank locations recently, even as online banking continues to gain traction.
