TD Bank Employee Arrested for Money Laundering

By Nivedita Balu

TORONTO (Reuters) – A former TD Bank employee in Florida has been arrested and charged with facilitating money laundering to Colombia, according to New Jersey's attorney general on Wednesday. This marks the first such arrest following the Canadian bank's $3 billion fine.

TD Bank's U.S. division pleaded guilty in October to conspiracy to commit money laundering, becoming the first bank in the U.S. to do so, and the largest to plead guilty to violations of the U.S. Bank Secrecy Act. Regulators imposed substantial fines, an asset cap, and mandated government monitors due to failures in the bank's compliance system that permitted the laundering of up to $670 million derived from narcotics sales.

Numerous arrests or charges have been made in the U.S. over the years in connection with TD's money laundering activities.

In the case of Leonardo Ayala, 24, he served at a TD Bank location in Doral, Florida from February to November 2023. He faces accusations of aiding a money laundering network by issuing multiple debit cards for accounts linked to shell companies in exchange for bribes, as detailed in court documents. These accounts were used to launder drug trafficking proceeds via cash withdrawals at ATMs in Colombia, stated New Jersey's attorney general.

The investigation unveiled that millions of dollars were laundered to Colombia through the accounts managed by Ayala.

Ayala has not been reachable for comment.

A TD spokesperson mentioned, “We identified the activity, reported it, and cooperated closely with authorities in their investigation. We continue to actively support their efforts.”

In October, U.S. officials reported that TD bank employees had received at least $57,000 in gift cards in 2020 and 2021 from a criminal who funneled over $400 million through the bank. In one instance, money laundering networks deposited funds in the U.S. and rapidly withdrew them using ATMs in Colombia, successfully laundering millions, according to the U.S. Justice Department. Five TD employees were implicated in a conspiracy with the network.

The charge of money laundering conspiracy carries a maximum penalty of 20 years in prison and a fine of $500,000 or twice the amount involved in the offense, whichever is greater.