TD Bank pleads guilty to violating anti-money laundering laws and will pay more than $3 Billion in penalties

Canada's Toronto-Dominion Bank (TD Bank) has admitted to violating federal money laundering and bank transparency laws after being accused of facilitating the laundering of hundreds of millions of dollars tied to drug trafficking. The bank agreed to pay more than $3 billion in fines and penalties imposed by federal agencies, including the Federal Reserve.

TD Bank failed to adequately oversee the activities of its retail subsidiary, allowing money laundering networks to funnel millions of dollars through its accounts. According to investigations, the bank failed to properly monitor transactions worth $18.3 billion over a six-year period, making it easier for three criminal organizations to move significant amounts of illicit money.

"It allowed financial crimes to flourish"

The Attorney General, Merrick Garland, spoke out about this issue at a press conference, "TD Bank created an environment that allowed financial crimes to flourish. By making its services convenient for criminals, it became one."

In addition, Garland pointed out that the bank is the largest in U.S. history to plead guilty under the Bank Secrecy Act and the first to admit conspiracy to commit money laundering.

More than $670 million was allegedly laundered

The Department of Justice (DOJ) also announced that more than two dozen individuals involved in these schemes, who allegedly laundered more than $670 million through TD Bank, are being prosecuted. Two defendants are bank employees.

"Our laws dictate that the narcotics traffickers who flood our communities with deadly drugs cannot use U.S. financial institutions to move their money. And our anti-money laundering laws dictate that abank that deliberately fails to protect against criminal schemes is also a criminal. That's what TD Bank was," Garland added.

The fine imposed on TD Bank sets a historic precedent, exceeding the penalty imposed on Wells Fargo in 2018.