In a landmark case, TD Bank has agreed to pay a staggering $3 billion in penalties after pleading guilty to violations of US anti-money laundering (AML) laws. Between 2014 and 2023, TD Bank had “long-term, pervasive, and systemic deficiencies” in its AML procedures, according to court documents. Despite being alerted to these issues by regulators and its own audit teams, the bank failed to take necessary remedial action.
US Attorney General Merrick Garland remarked, “By making its services convenient for criminals, TD Bank became one.” The Department of Justice (DoJ) reports that TD Bank’s failure to monitor 92% of its transaction volume—worth a shocking $18.3 trillion—made it easy for criminal networks to exploit the bank. Some of the unmonitored payment types included domestic ACH transactions, cheque activities, and new products like the Zelle P2P service.
From 2019 to 2023, three major money laundering networks managed to funnel over $670 million through TD Bank accounts. One network alone moved $470 million between 2018 and 2021 by making large cash deposits into nominee accounts, even offering bank employees over $57,000 in gift cards to ensure cooperation.
The total penalties include $1.8 billion to the US Justice Department, with the remaining amounts going to banking regulators and the Treasury Department’s Financial Crimes Enforcement Network (FinCEN). Additionally, TD Bank will retain an independent compliance monitor for the next three years.
Attorney General Garland added, “TD Bank is now the largest bank in US history to plead guilty to Bank Secrecy Act failures and the first to plead guilty to conspiracy to commit money laundering.”
Bharat Masrani, CEO of TD Bank, acknowledged the bank’s responsibility, stating, “We have taken full responsibility for the failures of our US program and are making the investments, changes, and enhancements required to deliver on our commitments.”
