Former TD Bank Employee Accused of Falsifying Documents and Facilitating Cross-Border Cash Flow

A former TD Bank employee has been accused of falsifying documents to open dozens of accounts and providing concierge-like services to help clients move money across borders, it was claimed today (Monday).

Gerry Aquino Vargas, a now-former retail banker in Hollywood, Florida, an outpost of TD Bank, allegedly accepted a series of $200 bribes to assist clients in transferring millions to Colombia by circumventing anti-money laundering (AML) defenses, according to U.S. prosecutors.

The lender is already under investigation by the U.S. Department of Justice over its connections to a $653 million drug money-laundering case in New York and New Jersey. This case involves illegal drug sales and an employee taking a bribe to facilitate the laundering of drug money.

These cases, which have not yet been reported and do not identify Toronto-Dominion by name, are part of a broad investigation by officials at the Justice Department, bank regulators, and the Treasury Department into allegations of money laundering and other financial crimes at the bank.

This news marks the latest setback for Canada’s second-biggest lender, which has seen its strategic expansion into the U.S. hindered by a series of AML scandals. Insiders report that the bank’s search for a new CEO has also been affected by the FCC failures.

The ongoing probes may result in a costly settlement for TD, with some analysts now estimating the cost at $2 billion. Additionally, this situation could pose a significant setback for the firm’s U.S. ambitions, potentially delaying their progress for several years.

Last month, Canada’s regulator FINTRAC announced a $9 million fine for TD over AML failings. The previous year, the bank disclosed its cooperation with U.S. authorities in an investigation into its anti-money laundering compliance program by the Department of Justice.

“When we became aware of these matters, we took action against these employees, coordinated efforts with the DOJ, and have supported their work to bring these criminals to justice,” TD Bank said in an emailed statement on Monday evening.

By fLEXI tEAM