U.S. Attorney General said TD created an environment ‘that allowed financial crime to flourish’
Toronto-Dominion Bank has agreed to pay fines totalling about US$3.09 billion from U.S. regulators after pleading guilty to multiple charges related to failures in its anti-money laundering program.
The bank also received a cease-and-desist order, a US$450 million penalty and non-financial sanctions from the Office of the Comptroller of the Currency that put limits on its growth in the U.S. after it found TD’s transaction monitoring program had “significant, systemic breakdowns.
The total assets of TD’s two U.S. banking subsidiaries cannot exceed US$434 billion as part of the sanctions. That restriction does not apply to TD Securities or any of the bank’s Canadian or other global businesses. Last month, Masrani said the shortcomings were his to bear as the bank announced Raymond Chun will replace him upon his retirement next year.
At least one of those schemes involved five TD Bank employees who conspired with criminal organizations to open and maintain accounts at the bank which were used to launder US$39 million to Colombia, including money from drug proceeds, said Garland. Due to the settlement, TD said 2025 would be a “transition year” with short-term costs that will necessitate a balance sheet restructuring by the bank. It said it will reduce U.S. assets by around 10 per cent in 2025 and maintain elevated levels of liquidity as part of that plan.
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