TD Bank Pleads Guilty to Major Legal Violations

TORONTO (Reuters) – TD Bank has become the largest bank in U.S. history to plead guilty to breaches of the Bank Secrecy Act, and the first to plead guilty to conspiracy to commit money laundering.

Key Comments from U.S. Officials

U.S. Attorney General Merrick Garland

• Over three years, an individual known as David moved over $470 million in illegal funds through TD Bank branches.
• David chose TD Bank for its permissive policies and bribed employees with $57,000 in gift cards.
• He made cash deposits over $1 million in a single day then transferred funds quickly using checks and wire transfers.

• Multiple TD Bank employees recognized the illegitimacy of David's activities, voicing concerns internally.

• In a separate scheme, five TD Bank employees conspired with criminals to launder $39 million to Colombia, including drug money.

Deputy U.S. Attorney General Lisa Monaco

• Urged that this case should serve as a warning regarding accountability for corporate wrongdoers.
• Highlighted that despite rising profits, TD Bank neglected its compliance program for years, allowing money laundering to occur and resulting in a historic $1.8 billion penalty under the Bank Secrecy Act.

U.S. Deputy Treasury Secretary Wally Adeyemo

• Stated that while most financial institutions collaborate with Treasury to ensure safety, TD Bank did the opposite, facilitating drug trafficking and money laundering around $400 million.

Principal Deputy U.S. Attorney General Nicole Argentieri

• Commented on TD Bank's prioritization of profits over compliance, reflecting a stagnant transaction monitoring system that remained unaddressed despite warnings.

Attorney for the District of New Jersey Philip Sellinger

• Noted TD Bank intentionally omitted common financial transactions from its monitoring systems. From January 2018 to April 2024, it failed to monitor approximately 92% of transactions, totaling around $18.3 trillion.
• Criticized the bank for its ease of use for criminals, calling it 'America's most convenient bank' as a joke among employees.