Billion-Dollar Bank Faces Impending $450 Million Fine Over Inadequate Anti-Money Laundering Program
Major financial institution Toronto Dominion (TD) is bracing itself for a hefty penalty of nearly half a billion dollars due to its deficient anti-money laundering (AML) program. TD has set aside an initial provision of $450 million to settle with the US government in response to an AML program that failed to effectively monitor, detect, report, and respond to suspicious transactions. TD is currently engaged in discussions with three US regulators and the US Department of Justice (DOJ) regarding the penalties. Additional monetary fines are anticipated, and the initial provision does not account for potential non-monetary penalties, which are currently unknown. The bank acknowledges the need to rectify the deficiencies in its AML program and is dedicating efforts to address the issues. TD’s US arm, operating out of Wilmington, Delaware, manages approximately $367 billion in assets, making it the tenth largest bank in the US.