TD Bank hit with record $3 billion fine over drug cartel money laundering

[BumRushDaShow]

Source: CNN Business

Updated 1:18 PM EDT, Thu October 10, 2024


New York CNN — TD Bank will pay $3 billion to settle charges that it failed to properly monitor money laundering by drug cartels, regulators announced Thursday. The fine includes a $1.3 billion penalty that will be paid to the US Treasury Department’s Financial Crimes Enforcement Network, a record fine for a bank. TD also intends to pay $1.8 billion to the US Justice Department and plead guilty to resolve the US government’s investigation that the bank violated of the Bank Secrecy Act and allowed money laundering.

The US Department of Justice said in a statement that TD Bank had “long-term, pervasive, and systemic deficiencies” in its procedures of monitoring transactions. More than 90% of transactions went unmonitored between January 2018 to April 2024, which “enabled three money laundering networks to collectively transfer more than $670 million through TD Bank accounts,” according to a legal filing.

In one instance, TD Bank employees collected more than $57,000 worth of gift cards to process more than $470 million in cash deposits from a money laundering network to “ensure employees would continue to process their transactions” and not declare them in required reports, the DoJ said.

In a related statement, the Office of the Comptroller of the Currency (OCC), a US agency that regulates banks, said TD processed hundreds of millions of dollars of transactions the clearly indicated highly suspicious activity. The Wall Street Journal first reported the news late Wednesday.

Read more: https://www.cnn.com/2024/10/10/investing/td-bank-settlement-money-laundering/index.html

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Link to Department of Treasury/FinCEN PRESS RELEASE - FinCEN Assesses Record $1.3 Billion Penalty against TD Bank

[Prairie Gates]

1. Is TD associated with the Ricketts?

[democratsruletheday]

5. I don't think so....

that's TD Ameritrade

[Phoenix61]

2. Long past time to criminally charge top level management. nt

[msfiddlestix]

3. That's a BFD. Although, one wonders how much more they should have been fined.

I had a Samsung device financed by TD Bank. I did notice the paperwork had the company listed in Florida. I had never heard of this bank before, but there are so many I haven't heard of before.
Given the location, I wondered if it was a mobster bank.

Looks like my instinct was fairly on target.

[erronis]

4. I've been using TD for the last 20 years. Big bank headquartered in Canada.

They are a typical too-big-to-fail organization --- the governments will slap their wrists a bit but not do anything to scare the customers (freak the markets.)

Just another financial institution that is profiting from dealing with huge sums of cash - almost every major US bank is doing the same. The reward can be very nice (and tax free if undiscovered) and the penalties are pennies on the dollars/pounds/rubles/etc.