TD Bank Sets Aside $2.6 Billion for Expected Fines Amid Money-Laundering Allegations

Posted on September 9th, 2024 at 3:57 PM
TD Bank Sets Aside $2.6 Billion for Expected Fines Amid Money-Laundering Allegations

From the desk of Jim Eccleston at Eccleston Law

Toronto-Dominion Bank (TD Bank) has allocated $2.6 billion to cover anticipated fines related to failures in its anti-money laundering (AML) controls. According to ThinkAdvisor, the allegations focus on TD’s failure to detect money laundering and other financial crimes at several of its U.S. branches, where some employees reportedly accepted bribes to facilitate illegal transactions.

In response to the growing scrutiny, TD has taken decisive action, including terminating approximately a dozen front-line employees for code-of-conduct violations and replacing around ten senior compliance and legal leaders. Despite these efforts, speculation remains about potential non-monetary penalties TD could face, such as restrictions on its ability to grow or make acquisitions in the U.S.

The fallout from these investigations adds to the challenges TD faces, particularly after last year’s failed $13.4 billion deal to acquire First Horizon Corp., which collapsed due to regulatory uncertainties.

 

Eccleston Law LLC represents investors and financial advisors nationwide in securities, employment, transition, regulatory, and disciplinary matters.

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