The tenth-largest bank in the United States pleads guilty and will pay a $3.1 billion fine for money laundering violations.
TD Bank, the tenth largest bank in the United States, has agreed to pay a $3.1 billion fine for its involvement in money laundering violations. The bank has formally admitted guilt for conspiracy to commit money laundering and violations of the Bank Secrecy Act. The penalties include payment of $1.8 billion to the United States Department of Justice (DOJ) and an additional $1.3 billion to the Financial Crimes Enforcement Network (FinCEN).
Analysis of related criminal activities
According to U.S. prosecutors, the bank’s oversight of large financial transactions was inadequate, facilitating illicit activities by criminals, including international drug traffickers. People connected to criminal groups were able to deposit large sums of cash in the bank, without hindrance from regulatory controls. Additionally, in some cases, bank employees may have been complicit, accepting gifts to support such operations.
The bank’s compliance mechanism deficiencies involved various types of transactions, including ACH electronic network payments, international checks, peer-to-peer transfers, and interactions with high-risk countries. Although both internal staff and regulatory bodies had reported these issues, the bank failed to implement necessary improvements to its compliance systems for several years.
Legal authorities’ statements
Philip R. Sellinger, United States Attorney for the District of New Jersey, described the bank’s compliance issues as “shocking and pervasive”. Sellinger emphasized that these deficiencies allowed the illegal movement of hundreds of millions of dollars through banking systems.
Attorney General Merrick Garland stated that the legal investigation remains ongoing, with the possibility of additional charges against those involved. Garland noted that the bank prioritized financial gains over compliance with laws, leading to billions in penalties. He finally declared:
“By making its services convenient for criminals, TD Bank became one.”
