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New Developments In TD Bank Money Laundering Case
TDDominion Bank(TD) Forbes·2024-12-11 21:51

TD Bank Money Laundering Scandal - TD Bank pled guilty to civil and criminal charges related to money laundering, including conspiring to violate the Bank Secrecy Act, and agreed to pay a total of 3billioninfines,includinga3 billion in fines, including a 1.8 billion criminal penalty [1] - The bank failed to monitor 18.3trillionofquestionablecustomeractivitybetweenJanuary2014andOctober2023,andisrequiredtocooperatefullywiththeJusticeDepartment′songoinginvestigationintoitsofficers,directors,andemployees[2]−Thebank′sPresidentandCEOBharatMasraniannouncedhisretirementinApril2025,withnochargesfiledagainsthimatthistime,butthebankfacesthethreatofadditionalcriminalchargesifitfailstocooperatewithfurtherinvestigations[3]InvolvementinFentanylMoneyLaundering−TDBankemployeesallegedlyhelpedlaunder18.3 trillion of questionable customer activity between January 2014 and October 2023, and is required to cooperate fully with the Justice Department's ongoing investigation into its officers, directors, and employees [2] - The bank's President and CEO Bharat Masrani announced his retirement in April 2025, with no charges filed against him at this time, but the bank faces the threat of additional criminal charges if it fails to cooperate with further investigations [3] Involvement in Fentanyl Money Laundering - TD Bank employees allegedly helped launder 474 million in cash from illicit fentanyl sales by Chinese criminal syndicates between 2018 and 2021, with employees accepting bribes to deposit large sums of cash and facilitate wire transfers [4][5] - The bank's compliance executives were notified of suspicious activities by the Sze network, including 8.3millionworthofcheckspurchasedwithcash,butfailedtoactinatimelymanner[5]−SenatorsWydenandWarrencriticizedthelackofconsequencesforTDBankexecutives,emphasizingthebank′sroleinenablingfentanyltraffickingandendangeringAmericanlives[5][6]LawEnforcementActionsandIndustryContext−TheJusticeDepartmentchargedathirdminor−levelTDBankemployeewithmoneylaunderingbuthastakennoactionagainsthigher−levelexecutivesdespiteevidenceoftheirinvolvement[6]−Historicalprecedent,suchasHSBC′s8.3 million worth of checks purchased with cash, but failed to act in a timely manner [5] - Senators Wyden and Warren criticized the lack of consequences for TD Bank executives, emphasizing the bank's role in enabling fentanyl trafficking and endangering American lives [5][6] Law Enforcement Actions and Industry Context - The Justice Department charged a third minor-level TD Bank employee with money laundering but has taken no action against higher-level executives despite evidence of their involvement [6] - Historical precedent, such as HSBC's 1.9 billion fine in 2012 for money laundering, shows that large banks often face financial penalties without individual executives being charged [7] - It remains uncertain whether the ongoing investigation will result in criminal charges against TD Bank executives in positions of power [7]