Canada's TD Bank Group has agreed to pay a record US$3.1 billion in fines to U.S. authorities after admitting it allowed drug cartels and other criminal networks to carry out illegal money-laundering activities through its systems.
TD Bank Group, Canada's largest bank, has agreed to pay a record US$3.1 billion in fines to U.S. authorities after admitting it allowed drug cartels and other criminal networks to carry out illegal money-laundering activities through its systems. This landmark deal, which includes a rare imposition of an asset cap and other business limitations, stems from multiple government investigations that uncovered widespread issues within the bank's anti-money laundering (AML) programs. The U.S.
Justice Department stated that TD Bank failed to adequately monitor and detect suspicious activity, allowing criminals to exploit weaknesses in its AML controls. This resulted in the bank facilitating billions of dollars in illicit financial transactions. The bank has taken steps to address these issues, including suspending its medium-term earnings forecast and launching a strategic review that will assess growth opportunities, productivity initiatives, and potential divestments. This review is being led by incoming CEO Bharat Masrani, who will assume the role earlier than planned on February 1st. Masrani's total compensation was also slashed by 89% to US$1.5 million for 2024, down from US$13.27 million in 2023. The bank's outgoing CEO, said the review will address the bank's AML remediation program and ensure the bank meets the highest standards of compliance
MONEY LAUNDERING FINES TD BANK CRIMINAL NETWORKS COMPLIANCE
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