TD Bank's US troops reportedly plan to plead guilty to anti-money laundering failures.
The Toronto-based bank is expected to agree to pay about $3 billion in fines and limit its growth in the United States as part of a plea deal, The Wall Street Journal reported. reported Late Wednesday (October 9th).
Officials told WSJ: plea bargain – US Office of the Comptroller of the Currency Asset caps are expected to prevent TD's retail business from expanding beyond a certain level in the United States.
moreover, Ministry of Justice and Ministry of Finance Financial Crimes Enforcement Network (FinCEN) plans to set up an independent monitor to monitor banks and ensure compliance with the agreement, sources said. A source told the Journal that the FinCEN monitoring system is expected to be in place for four years.
According to WSJ sources, the maximum amount of the fine (approximately $1.8 billion) will be paid to the Department of Justice, while FinCEN will receive $1.3 billion. The petition could be announced as early as Thursday (October 10), according to reports.
PYMNTS has reached out to TD for comment, but has not yet received a response.
The U.S. Department of Justice has launched an investigation into TD's anti-money laundering (AML) practices after learning that Chinese criminal operations were laundering hundreds of millions of dollars from drug trafficking through the bank's branches in New York and New Jersey. . Bribes to TD employees.
The bank said it has since taken steps to improve its AML protections. The incident also led to the resignation of President and CEO Bharat Masrani. I will retire 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.”
As PYMNTS wrote earlier this year, the lawsuit against TD comes amid increased scrutiny of AML practices in the financial world.
“And what I think these companies, banks, fintech companies are missing is; (literal) price to pay” states the report. “Meanwhile, the very rules governing AML and anti-fraud efforts may change as regulators are in a comment period seeking input on the use of advanced technology. Strengthen your defenses against fraud At a financial institution. ”
