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  5. TD Bank agrees to $3 billion penalty, pleads guilty to US money laundering violations

TD Bank agrees to $3 billion penalty, pleads guilty to US money laundering violations

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TD Bank has agreed to pay a total of $3 billion in penalties to settle charges related to money laundering by drug cartels. The bank has admitted to conspiring to launder money and failing to file accurate reports. Two TD Bank units have pleaded guilty to United States criminal charges. As part of the plea deal, an asset cap and other business limitations will be imposed on the bank, which has acknowledged ignoring red flags from high-risk customers. The $3 billion fine includes a $1.3 billion penalty to be paid to the Financial Crimes Enforcement Network and $1.8 billion to the Justice Department.

  1. US
    Philip Sellinger
    US Attorney's Office
    1. It is no wonder, then, that the motto 'America's most convenient bank' was used as a joke among employees to describe TD Bank being convenient for criminals.
  2. US
    Merrick Garland
    US Department of Justice
    1. By making its services convenient for criminals, it became one.
    2. TD Bank chose profits over compliance in order to keep its costs down.
  3. US
    Wally Adeyemo
    US Treasury Department
    1. I want to be clear, these systemic failures did not just create hypothetical vulnerabilities, but they resulted in actual, material harm to American citizens and communities.
    2. Time and again, unlike its peers, TD Bank prioritized growth and profit over complying with the law. The bank enabled drug trafficking.
  4. US
    Lemar Persaud
    Cormark Securities
    1. The TD probe has led to significant underperformance of the stock, and we believe, the retirement of the current CEO, Bharat Masrani.
  5. US
    John Aiken
    Jefferies Group
    1. TD will need to find a new avenue for growth from its traditional reliance on U.S. retail banking.
    2. We believe that the market was becoming increasingly comfortable with the thought that there would not be any growth restrictions placed on TD.
  6. US
    Bharat Masrani
    TD Bank
    1. We have taken full responsibility for the failures of our U.S. [anti-money laundering] program and are making the investments, changes and enhancements required to deliver on our commitments.
    2. This is a difficult chapter in our bank's history.
    3. This is a difficult chapter in our Bank's history. These failures took place on my watch as CEO and I apologize to all our stakeholders.

sources

  1. 1.Al Jazeera
  2. 2.The Times of India
  3. 3.CTV News
  4. 4.CNN
  5. 5.Wall Street Journal

perspectives

  1. 1.Mexican Cartels
  2. 2.Drug Trafficking
  3. 3.Banking industry
  4. 4.Money Laundering

countries

  1. 1.CanadaCA
  2. 2.ChinaCN
  3. 3.MexicoMX
  4. 4.United StatesUS

organizations

  1. 1.TD Bank
  2. 2.Wells FargoUS
  3. 3.Financial Crimes Enforcement Network
  4. 4.Office of the Comptroller of the Currency
  5. 5.US Department of JusticeUS
  6. 6.Cormark Securities
  7. 7.Federal Reserve SystemUS
  8. 8.First Horizon
  9. 9.Jefferies GroupUS
  10. 10.US Internal Revenue Service
  11. 11.US Treasury DepartmentUS

persons

  1. 1.Bharat MasraniUS
  2. 2.Merrick GarlandUS
  3. 3.Lemar PersaudUS
  4. 4.Ray Chun
  5. 5.Elizabeth WarrenUS
  6. 6.John AikenUS
  7. 7.Philip SellingerUS
  8. 8.Wally AdeyemoUS

technicals

  1. 1.US Bank Secrecy Act