TD Bank Slapped with $3 Billion Fine for Failing to Prevent Cartel Money Laundering
Hey FinTech Fanatic!
TD Bank is in hot water, slapped with a record $3 billion fine for failing to monitor drug cartel money laundering activities. The settlement includes a $1.3 billion penalty to the US Treasury’s FinCEN and a $1.8 billion payout to the Department of Justice (DoJ). TD also pleaded guilty to violating the Bank Secrecy Act.
According to the DoJ, more than 90% of transactions between 2018 and 2024 went unmonitored, enabling three money laundering networks to move $670 million. Treasury officials slammed TD for prioritizing growth over compliance, fueling drug trafficking and harming communities.
To address the fallout, TD is ramping up anti-money laundering efforts by hiring 700 specialists and enhancing surveillance. They’ll be under FinCEN’s watch for four years, with additional growth restrictions in the US.
TD’s shares dropped 6%, and analysts believe the bank will need to rethink its growth strategy.
What do you think? Let me know in the comments!
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