TD Bank agreed to pay $3 billion to settle anti-money laundering (AML) violations alleged by federal regulators, who have imposed an asset cap on the bank’s ability to take in new deposits. This represents the largest AML settlement in history brought by U.S. agencies.
The Federal Reserve, Office of the Comptroller of the Currency (OCC), and the Treasury’s Financial Crimes Enforcement Network (FinCEN) coordinated actions citing deficiencies in the bank’s AML risk management policies that left it vulnerable to bad actors.
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, according to a press release from the Fed.
The bank has pled guilty to criminal charges in connection with the matter.
Check back as Dodd Frank Update will provide more details on this developing news shortly.