TD Bank Fined $450 Million

Regulators found bank failed to stop money laundering

A major national bank is facing a $450 million fine and legal action that restricts future growth.

The Office of the Comptroller of the Currency found that TD Bank prioritized growth over security and violated the Bank Secrecy Act and anti-money laundering laws.

An OCC investigation found that TD Bank accepted deposits and moved funds despite indicators such activity was highly suspicious. TD's actions meant more income for the bank, even as some activity should have raised red flags regarding legality.

“TD Bank’s persistent prioritization of growth over controls allowed its employees to break the law and facilitate the laundering of hundreds of millions of dollars. The bank’s blatant risk management failures attracted illicit actors and are egregious and unacceptable,” said Acting Comptroller of the Currency Michael J. Hsu. “The OCC’s coordinated and comprehensive action, including the imposition of an asset cap, will ensure that the bank focuses on building proper controls commensurate with its risk profile.”

In addition to a $450 million fine, the consent order OCC entered into with TD Bank restricts future growth of the bank pending TD's investment in mechanisms to prevent or restrict fraudulent and illegal activity on its platforms.

Earlier this year, TD Bank was fined $28 million for reporting false and/or inaccurate debt information about customers that resulted in negative ratings on credit reports.

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