TD Bank N.A. and its parent company, TD Bank US Holding Company, have pleaded guilty to serious violations of the Bank Secrecy Act and money laundering laws, resulting in over $1.8 billion in penalties. The bank admitted to failing to maintain a compliant anti-money laundering program, failing to file accurate Currency Transaction Reports, and engaging in money laundering activities.
The guilty pleas were part of a collaborative resolution involving various regulatory bodies, including the Federal Reserve Board, the Office of the Comptroller of the Currency, and the Financial Crimes Enforcement Network. Attorney General Merrick B. Garland remarked that TD Bank’s actions made it complicit in criminal activities, marking a historic moment as the largest U.S. bank to plead guilty to such charges.
Federal officials highlighted that the bank had neglected its compliance program, which was critical for detecting criminal activities. Deputy Attorney General Lisa Monaco emphasized the importance of adhering to legal obligations, stating that the bank’s decision to prioritize growth over compliance ultimately led to substantial financial repercussions.
Internal communications revealed that TD Bank had failed to address known risks, making it a target for criminal organizations. The bank’s inadequate oversight allowed significant amounts of money to flow through its accounts from illegal activities, including transactions associated with international drug trafficking.
Federal regulators and the bank’s internal audits had repeatedly flagged deficiencies in its transaction monitoring systems. Despite this, TD Bank did not adequately respond or improve its practices, failing to monitor the majority of its transactions over several years. Criminal networks exploited these weaknesses, laundering millions of dollars through the bank.
In total, TD Bank is subject to a financial penalty of approximately $1.9 billion, which includes a forfeiture and a criminal fine. The bank has also committed to enhancing its compliance measures and will be monitored by an independent entity for three years. This case further reflects ongoing efforts by the Justice Department to hold financial institutions accountable for their roles in facilitating crime.