Toronto-Dominion Bank (TD) has pled guilty to multiple criminal charges related to money laundering in America and agreed to pay $3 billion U.S. in fines and penalties.
The U.S. Department of Justice brought multiple charges against TD for failing to monitor money laundering by drug traffickers and other criminals within the U.S.
U.S. Attorney General Merrick Garland said at a news conference: “By making its services convenient for criminals, TD Bank became one.”
The Justice Department said that TD failed to monitor $18.3 trillion U.S. in customer activity, allowing money launders to transfer $670 million U.S. through accounts at the bank.
In addition to the $3 billion U.S. in penalties, TD will also have limits imposed on its growth and expansion in the U.S. by the Office of the Comptroller of the Currency.
Moving forward, the total assets of TD’s two U.S. subsidiaries cannot exceed $434 billion U.S.
As part of the settlement, TD will pay $1.3 billion U.S. to the Treasury Department’s Financial Crimes Enforcement Network, the largest such penalty ever imposed in the U.S.
The stock of TD, Canada’s second biggest bank, has declined 5% so far in 2024 and currently trades at $81.76 per share.