TD Bank Settlement

(Reuters) – Canada's TD Bank agreed to pay a combined $3 billion in penalties on Thursday as part of a settlement with U.S. authorities over charges it failed to monitor and prevent money laundering.

The issue highlights a recurring challenge in the financial industry. Intermediaries like banks are required to prevent the flow of funds for illicit activities, but in some cases, they have failed to detect crimes due to inadequate compliance systems or huge transaction volumes.

Overview of Large Penalties in the Last Decade:

BINANCE:

• Binance chief Changpeng Zhao stepped down in November 2023 and pleaded guilty to breaking U.S. anti-money laundering laws as part of a $4.3 billion settlement.

DANSKE BANK:

• Denmark's Danske Bank agreed to pay more than $2 billion in January 2023 to end probes into anti-money laundering failures through a guilty plea.

SOCIETE GENERALE:

• France's Societe Generale committed to pay $1.4 billion in 2018 for handling dollar transactions that violated U.S. sanctions and anti-money laundering regulations.

GOLDMAN SACHS:

• Goldman Sachs agreed to pay $2.9 billion in 2020 over its role in the 1MDB corruption scandal involving Malaysia.

STANDARD CHARTERED:

• Standard Chartered settled for $1.1 billion in 2019 for conducting illegal financial transactions violating sanctions against Iran and others.
• The bank also paid $667 million in 2012 for moving funds illegally through the U.S. financial system.

DEUTSCHE BANK:

• Deutsche Bank agreed to pay $630 million in 2017 for failing to prevent around $10 billion in suspicious trades from Russia.

COMMERZBANK:

• Commerzbank agreed to pay $1.45 billion in 2015 to resolve investigations regarding its dealings with sanctioned countries and its money laundering controls.

BNP PARIBAS:

• BNP Paribas paid nearly $9 billion in 2014 to settle a review from U.S. authorities, pleading guilty to sanctions violations.

HSBC:

• HSBC consented to pay $1.92 billion in 2012 to settle a multi-year probe for failing to enforce anti-money laundering rules.

Source: Company statements, Reuters stories