TD Bank to Pay $3 Billion in Settlement with U.S. Regulators Over Money Laundering Charges

Canada’s TD Bank is set to pay approximately $3 billion in penalties as part of a settlement with U.S. regulators and prosecutors, following charges related to its failure to adequately monitor money laundering activities by drug cartels, according to a report by the Wall Street Journal.

The report states that the bank’s U.S. unit is expected to plead guilty to the charges. As of Wednesday, TD Bank had not responded to requests for comment.

As part of the settlement, the bank’s primary U.S. regulator, the Office of the Comptroller of the Currency (OCC), is expected to impose a cap on the bank’s U.S. assets, effectively limiting its growth in the country, according to sources cited by the Wall Street Journal. This measure would prevent TD Bank from expanding beyond a certain size in the U.S. market.

The U.S. Department of Justice (DOJ) and the Treasury Department’s Financial Crimes Enforcement Network (FinCEN) are also planning to assign independent monitors to oversee TD Bank’s compliance with the terms of the agreement, the report said. The FinCEN monitor is expected to be in place for four years, according to one person familiar with the matter.

The settlement will involve several U.S. agencies, including the DOJ, FinCEN, OCC, and the Federal Reserve. The Wall Street Journal reports that the largest portion of the penalties will go to the DOJ, which will receive approximately $1.8 billion, while FinCEN is expected to collect $1.3 billion.

Spokespeople for the DOJ, OCC, and FinCEN have not yet responded to requests for comment on the settlement, according to the report.

By fLEXI tEAM