U.S. authorities announced that two divisions of TD Bank (TD, Financial) have admitted to criminal charges related to money laundering and have agreed to pay a total fine of $3 billion. This settlement aims to resolve the federal government's investigation into the case. The agreement includes imposing asset caps and other restrictions on the bank's operations.
The U.S. Department of Justice reported that TD Bank has confessed to conspiracy to commit money laundering and failing to submit accurate reports or comply with anti-money laundering programs. The asset cap imposed by the Office of the Comptroller of the Currency is considered an uncommon measure, typically reserved for severe cases. This development presents a significant setback for TD Bank as it aims to expand its operations in the U.S., which currently accounts for about one-third of its revenue.
In addition, TD Bank has also agreed to pay a combined $3 billion in fines to U.S. banking regulators, the Department of Justice, and the Treasury Department's Financial Crimes Enforcement Network.
