Round Up: TD Bank Pleads Guilty to Bank Secrecy Act and Money Laundering Conspiracy Violations, Multi-Agency Penalties Total c$3.09 billion
FinCEN: FinCEN Assesses Record $1.3 Billion Penalty Against TB Bank
The U.S. Department of the Treasury’s Financial Crimes Enforcement Network (FinCEN) assessed a record $1.3 billion penalty against TD Bank, N.A. and TD Bank USA, N.A. (collectively, TD Bank, or the Bank) for violations of the Bank Secrecy Act (BSA), the primary U.S. anti-money laundering (AML) law that safeguards the financial system from illicit use. TD Bank is among the largest banks in the United States.
FinCEN’s $1.3 billion settlement is the largest penalty against a depository institution in U.S. Treasury and FinCEN history. FinCEN’s action also imposes a four-year independent monitorship to oversee TD Bank’s required remediation.
“The vast majority of financial institutions have partnered with FinCEN to protect the integrity of the U.S. financial system. TD Bank did the opposite… Read the full press release here: https://www.fincen.gov/news/news-releases/fincen-assesses-record-13-billion-penalty-against-td-bank
Link to FinCEN Consent Order here: https://www.fincen.gov/sites/default/files/enforcement_action/2024-10-10/FinCEN-TD-Bank-Consent-Order-508FINAL.pdf
US Department of Justice: TD Bank Pleads Guilty to Bank Secrecy Act and Money Laundering Conspiracy in $1.8B Resolution
TD Bank N.A. (TDBNA), the 10th largest bank in the United States, and its parent company TD Bank US Holding Company (TDBUSH) (together with TDBNA, TD Bank) pleaded guilty today and agreed to pay over $1.8 billion in penalties to resolve the Justice Department’s investigation into violations of the Bank Secrecy Act (BSA) and money laundering.
TDBNA pleaded guilty to conspiring to fail to maintain an anti-money laundering (AML) program that complies with the BSA, fail to file accurate Currency Transaction Reports (CTRs), and launder money. TDBUSH pleaded guilty to causing TDBNA to fail to maintain an AML program that complies with the BSA and to fail to file accurate CTRs.
TD Bank’s guilty pleas are part of a coordinated resolution with the Board of Governors of the Federal Reserve Board (FRB), as well as the Treasury Department’s Office of the Comptroller of the Currency (OCC) and Financial Crimes Enforcement Network (FinCEN). “By making its services convenient for criminals, TD Bank became one”… Read the full press release here: https://www.justice.gov/opa/pr/td-bank-pleads-guilty-bank-secrecy-act-and-money-laundering-conspiracy-violations-18b
Link to TD Bank US Holding Company Information here: https://www.justice.gov/opa/media/1373341/dl
Link to TD Bank N.A. Information here: https://www.justice.gov/opa/media/1373346/dl
Link to TD Bank US Holding Company Plea Agreement and Attachments here: https://www.justice.gov/opa/media/1373351/dl
Link to TD Bank N.A. Plea Agreement and Attachments here: https://www.justice.gov/opa/media/1373336/dl
US Department of Justice: Attorney General Merrick B. Garland Delivers Remarks Announcing TD Bank’s Guilty Plea for Banking Secrecy Act and Money Laundering Conspiracy Violations in $1.3B Resolution
Good afternoon everyone. Before we get started today, I want to extend my sympathy to the millions of Americans who’ve had their lives turned upside down by Hurricane Milton and Hurricane Helene.
I know I speak for all of us in expressing my gratitude to the first responders on the ground who are carrying out rescue missions. And I want to thank all of the volunteers who are helping their neighbors get through these storms.
And now to the subject of today’s announcement.
Today, TD Bank pled guilty to multiple felonies, including conspiring to violate the Bank Secrecy Act and commit money laundering. TD Bank has also agreed to a $1.8 billion criminal penalty. Combined with civil enforcement actions announced today by other agencies, the United States will be imposing a total [penalty] of approximately $3 billion against TD Bank.
TD Bank created an environment that allowed financial crime to flourish. By making its services convenient for criminals, it became one… Read the full remarks here: https://www.justice.gov/opa/speech/attorney-general-merrick-b-garland-delivers-remarks-announcing-td-banks-guilty-plea-bank
US Department of Justice: Deputy Attorney General Lisa Monaco Delivers Remarks Announcing TD Bank’s Guilty Plea for Banking Secrecy Act and Money Laundering Conspiracy Violations in $1.3B Resolution
Thank you, Mr. Attorney General.
Today, one of North America’s largest banks pleaded guilty to some of the most serious charges a financial institution can face.
This case should serve as a warning and a reminder that we will hold corporate wrongdoers accountable, no matter their size or stature.
But this case also highlights the critical importance of maintaining a culture of compliance — and offers a cautionary tale of how bad things can go without one.
When you put your hard-earned money in a bank – that bank should meet a very basic requirement.
It should follow the law.
For financial institutions, that means — among other obligations — adhering to the Bank Secrecy Act (BSA).
This law is fundamental — not only for protecting our financial system — but also our national security… Read the full remarks here: https://www.justice.gov/opa/speech/deputy-attorney-general-lisa-monaco-delivers-remarks-announcing-td-banks-guilty-plea
US Department of Justice: Principle Deputy Assistant Attorney General Nicole M. Argentieri Delivers Remarks Announcing TD Bank’s Guilty Plea for Banking Secrecy Act and Money Laundering Conspiracy Violations in $1.3B Resolution
Thank you, Deputy Secretary Adeyemo. I’m Nicole Argentieri, head of the Criminal Division.
Today, we are announcing the guilty plea of TD Bank, the 10th largest retail bank in the United States, for Bank Secrecy Act violations and money laundering. Over the course of a decade, TD Bank placed profits over compliance, prioritizing a “flat cost paradigm” that limited spending across the bank — including on the bank’s anti-money laundering (AML) compliance program, despite growing risks — even while profits soared.
The bank knew it had pervasive and systemic deficiencies in its AML program, including a transaction monitoring system that remained stagnant over the course of 10 years despite warnings from regulators, consultants, and even its own employees.
AML employees joked that the Bank’s failed AML system made TD an “easy target” and a “convenient” bank for bad actors. And they were right. TD’s failed AML compliance program created vulnerabilities that criminals — including TD’s own employees — used to launder money through the Bank.
All told, three large money laundering networks, two prosecuted by our partners in the District of New Jersey and the third prosecuted in the District of Puerto Rico, laundered over $670 million through TD… Read the full remarks here: https://www.justice.gov/opa/speech/principal-assistant-attorney-general-nicole-m-argentieri-delivers-remarks-announcing-td
US Department of the Treasury: Remarks by Deputy Secretary of the Treasury Wally Adeyemo at Press Conference at the Department of Justice
Thank you. I am glad to join Attorney General Garland, Deputy Attorney General Monaco, and the rest of you here today.
The Department of the Treasury utilizes sanctions and the enforcement of our country’s anti-money laundering (AML) laws to protect our national security from illicit actors. From drug trafficking to combatting Russian aggression, the Treasury Department is committed to using all of the tools available to us to protect the American people.
We are proud of the public-private partnership we have formed with the financial sector to protect our national security. The vast majority of financial institutions work hand-in-hand with Treasury to keep our country and our communities safe.
TD Bank has done the exact opposite. For more than a decade, through deliberate actions—and inaction—TD Bank failed to meet its responsibilities… Read the full remarks here: https://home.treasury.gov/news/press-releases/jy2640
Federal Reserve Board: Federal Reserve Board Fines Toronto-Dominion Bank $123.5 Million for Violations Related to Anti-Money Laundering Laws
The Federal Reserve Board on Thursday fined Toronto-Dominion Bank $123.5 million for violations related to anti-money laundering laws. The Board is also requiring TD to implement enhanced measures to comply with anti-money laundering laws and to correct its risk management deficiencies.
TD failed to conduct adequate risk management and oversight of its retail banking operations in the United States, resulting in a U.S. subsidiary being used to launder hundreds of millions of dollars in illicit proceeds. The Board’s action will help ensure that TD operates in compliance with all U.S. laws and regulations.
The Board is requiring TD to:
- Establish a new office in the United States dedicated to remediating the deficiencies identified in the order;
- Relocate to the United States the parts of its anti-money laundering compliance program that are responsible for complying with U.S. law. This program will be subject to oversight by U.S. regulators;
- Certify that sufficient resources and attention are allocated to correcting the firm’s anti-money laundering deficiencies prior to issuing any dividends or capital distributions; and
- Undertake a thorough and independent review of the firm’s board of directors and management to ensure adequate oversight of the U.S. operations… Read the full press release here: https://www.federalreserve.gov/newsevents/pressreleases/enforcement20241010a.htm
Link to Cease and Desist Order and Assessment of Civil Money Penalty Order here: https://www.federalreserve.gov/newsevents/pressreleases/files/enf20241010a1.pdf
US Office of the Comptroller of the Currency (OCC): OCC Issues Cease and Desist Order, Asseses $450 Million Civil Money Penalty, and Imposes Growth Restriction Upon TD Bank, N.A. for BSA/AML Deficiencies
The Office of the Comptroller of the Currency (OCC) today announced a cease and desist order and a $450 million civil money penalty against TD Bank, N.A. and TD Bank USA, N.A. (bank), for deficiencies in the bank’s Bank Secrecy Act (BSA) and anti-money laundering (AML) compliance program. Today’s action also imposes a restriction on the growth of the bank and a measure designed to ensure that the bank invests sufficient resources to remediate its BSA/AML deficiencies in a timely manner.
“TD Bank’s persistent prioritization of growth over controls allowed its employees to break the law and facilitate the laundering of hundreds of millions of dollars. The bank’s blatant risk management failures attracted illicit actors and are egregious and unacceptable,” said Acting Comptroller of the Currency Michael J. Hsu. “The OCC’s coordinated and comprehensive action, including the imposition of an asset cap, will ensure that the bank focuses on building proper controls commensurate with its risk profile”… Read the full press release here: https://www.occ.gov/news-issuances/news-releases/2024/nr-occ-2024-116.html
Link to Consent Order here: https://www.occ.gov/static/enforcement-actions/eaAA-ENF-2024-77.pdf
Link to Civil Money Penalty here: https://www.occ.gov/static/enforcement-actions/eaAA-ENF-2024-78.pdf
Link to Enforcement Action Types here: https://www.occ.gov/topics/laws-and-regulations/enforcement-actions/enforcement-action-types/index-enforcement-action-types.html
Link to Fact Sheet here: https://www.occ.gov/news-issuances/news-releases/2024/nr-occ-2024-116a.pdf
Canada Office of the Superintendent of Financial Institutions: Binance Statement from the Superintendent of Financial Institutions Regarding Toronto-Dominion Bank
Today, Peter Routledge, Superintendent of Financial Institutions, released the following statement:
“Earlier today U.S. subsidiaries of Toronto-Dominion Bank pled guilty in the United States to charges related to deficiencies in their anti-money laundering regime. The information disclosed by Toronto-Dominion Bank’s U.S. regulators is serious.
While OSFI continuously responds to all relevant information it receives during our supervisory activities, Section 22 of the OSFI Act and Section 636 of the Bank Act bar me or any OSFI official from disclosing information regarding the business or affairs of a federally regulated financial institution.
Deficiencies in any institution’s anti-money laundering regime are a prudential risk. They can be illustrative of how non-financial risks can manifest as material financial risks… Read the full press release here: https://www.osfi-bsif.gc.ca/en/news/statement-superintendent-financial-institutions-regarding-toronto-dominion-bank
TD Bank: Resolution of AML Investigations (TD Bank Group Presentation)
Link to 19 page presentation titled ‘Resolution of AML Investigations’ by TD Bank here: https://www.td.com/content/dam/tdcom/canada/about-td/pdf/investor/resolution-of-aml-investigations-en.pdf
