https://www.wbfo.org/binational/2024-10-11/one-of-canadas-big-banks-is-hit-with-a-record-fine

The fine, the largest ever under the U.S. Bank Secrecy Act, came after TD Bank pleaded guilty in what’s become a historic money-laundering case. Among the charges was conspiracy to commit money laundering.

The fine includes $1.3 billion to be paid to the US Treasury’s Financial Crimes Enforcement Network and $1.8 billion to the US Justice Department.

Attorney General Merrick Garland compared TD to a criminal organization.

"At various times high-level executives including the person that became the bank’s chief anti-money laundering officer, knew there were serious problems with the bank’s anti-money laundering program," said Garland. "But the bank failed to correct them.  TD Bank created an environment that allowed financial crime to flourish by making its services convenient for criminals, it became one."

Legal documents say more than 90 percent of transactions between January 2018 and April 2024 went unmonitored, allowing three money laundering networks to transfer more than 670 million dollars through TD accounts.

The U.S. Treasury Department says the bank prioritized growth and profit over compliance with the law enabling drug trafficking.

There were hundreds of millions of dollars in transactions that were highly suspicious. Justice Department officials say TD Bank employees were given thousands of dollars in gift cards to process more than 470 million dollars.

The bank will now be subject to four years of scrutiny by financial regulators. Its money laundering compliance office is being forced to relocate to the U.S. and there will be a cap on its growth in the U.S.

TD Bank CEO Bharat Masrani apologized and said he takes full responsibility and the bank will ramp up its anti-money laundering efforts.

The bank’s shares plummeted six percent on financial markets.