TD Bank Nears Guilty Plea Over U.S. Money Laundering Failures Linked to Chinese Crime Groups

TD Bank is approaching a formal guilty plea over criminal charges tied to its U.S. retail arm’s failure to prevent money laundering related to Chinese crime syndicates and illegal fentanyl sales, according to sources familiar with the matter.

The Wall Street Journal reports that the Canadian financial institution, the second-largest lender in the country, is in negotiations with U.S. federal prosecutors, with a plea expected within two weeks.

Neither TD Bank nor the U.S. Department of Justice (DOJ) has immediately responded to requests for comment. However, TD previously stated in May that it had initiated a comprehensive overhaul of its U.S. and global anti-money laundering (AML) program.

At that time, the bank revealed it had invested over C$500 million ($400 million) in program improvements and platform upgrades, as it faced regulatory scrutiny over its compliance practices both in Canada and the United States.

The U.S. authorities have accused TD of "recklessness" in its failure to implement and maintain effective systems to prevent money laundering, according to the Journal. The bank has already earmarked over $3 billion to cover costs stemming from U.S. government investigations.

The DOJ investigation began after agents discovered a large-scale operation in New York and New Jersey, in which hundreds of millions of dollars generated by illicit drug sales were allegedly funneled through TD Bank and other financial institutions.

By fLEXI tEAM