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TD Bank and US Regulators Announce Measures to Resolve Bank's AML Failures
TDDominion Bank(TD) PYMNTS.com·2024-10-10 21:14

TD Bank Group's Compliance Failures and Penalties - TD Bank Group takes full responsibility for failures in its US Bank Secrecy Act (BSA) and anti-money laundering (AML) compliance programs and commits to remediation efforts [1] - The bank and its US subsidiaries consented to orders and entered into plea agreements with US regulators regarding BSA and AML program investigations [1] - TD Bank's US operations lacked an adequate AML program to prevent criminal activity, leading to systemic deficiencies from January 2014 to October 2023 [2][3] Regulatory Actions and Penalties - TD Bank N A and TD Bank US Holding Co agreed to pay over 18billioninpenaltiestoresolvetheJusticeDepartment′sinvestigationintoBSAandAMLviolations[3]−TheOfficeoftheComptrolleroftheCurrency(OCC)imposeda1 8 billion in penalties to resolve the Justice Department's investigation into BSA and AML violations [3] - The Office of the Comptroller of the Currency (OCC) imposed a 450 million civil money penalty and a cease and desist order on TD Bank N A and TD Bank USA [4] - The Financial Crimes Enforcement Network (FinCEN) assessed a 13billionpenaltyagainstTDBankNAandTDBankUSANAforBSAandAMLviolations[5]RemediationMeasuresandOversight−TDBankappointednewleadersacrossitsUSoperationsandoverhauleditsUSAMLteamtoaddresscompliancefailures[2]−Thebankagreedtoafour−yearmonitortooverseeremedialmeasures,includinganend−to−endreviewofitsAMLprogram[6]−FinCENrequiredTDBanktoprovidemissingsuspiciousactivityreportsandconductadditionalaccountabilityanddatagovernancereviews[7]HistoricalContext−TDBankbecamethelargestUSbankinhistorytopleadguiltytoBankSecrecyActprogramfailuresandthefirstUSbanktopleadguiltytoconspiracytocommitmoneylaundering[4]−The1 3 billion penalty against TD Bank N A and TD Bank USA N A for BSA and AML violations [5] Remediation Measures and Oversight - TD Bank appointed new leaders across its US operations and overhauled its US AML team to address compliance failures [2] - The bank agreed to a four-year monitor to oversee remedial measures, including an end-to-end review of its AML program [6] - FinCEN required TD Bank to provide missing suspicious activity reports and conduct additional accountability and data governance reviews [7] Historical Context - TD Bank became the largest US bank in history to plead guilty to Bank Secrecy Act program failures and the first US bank to plead guilty to conspiracy to commit money laundering [4] - The 1 3 billion penalty imposed by FinCEN is the largest ever against a depository institution in the history of the US Treasury and FinCEN [5]