TD Bank Pleads Guilty to Money Laundering and BSA Violations in $1.8B Settlement

TD Bank pleads guilty to violations of the Bank Secrecy Act and money laundering, agreeing to pay $1.8 billion in penalties.Photo byImage: Tysonomo Multimedia

TD Bank N.A. (TDBNA) and its parent company, TD Bank US Holding Company, pleaded guilty today to violating the Bank Secrecy Act (BSA) and conspiracy to commit money laundering, the Department of Justice (DOJ) announced.

The bank agreed to pay more than $1.8 billion in penalties as part of the settlement, the departments says.

The DOJ’s investigation revealed that between January 2014 and October 2023, TD Bank failed to maintain a compliant anti-money laundering (AML) program and filed inaccurate Currency Transaction Reports (CTRs), which are required under the BSA.

These deficiencies enabled money laundering networks to move over $670 million through TD Bank accounts, according to court documents.

“By making its services convenient for criminals, TD Bank became one,” said Attorney General Merrick B. Garland. “Today, TD Bank became the largest U.S. bank in history to plead guilty to Bank Secrecy Act program failures.”

The investigation found that TD Bank deliberately underfunded its AML compliance program, leaving trillions of dollars in transactions unmonitored.

Key services, such as automated clearinghouse (ACH) payments and peer-to-peer transfers, were not adequately tracked for suspicious activity.

Despite repeated warnings from federal regulators, the bank did not improve its systems, allowing criminals to exploit its services.

As part of the plea agreement, TD Bank will forfeit $452 million and pay a criminal fine of $1.43 billion, the department stated.

The bank also agreed to implement enhanced compliance measures and will be monitored by an independent compliance auditor for three years.

“TD Bank chose profits over compliance with the law—a decision that is now costing the bank billions of dollars in penalties. Let me be clear: Our investigation continues, and no individual involved in TD Bank’s illegal conduct is off limits,” said Garland.