TD Bank To Face $3B Penalty, Growth Limits In US Settlement Over Anti-Money Laundering Failures

Toronto Dominion Bank (NYSE:TD) is reportedly preparing to settle charges related to its alleged failure to monitor money laundering by drug cartels, the Wall Street Journal said in an exclusive report.

The Canadian bank is expected to pay approximately $3 billion in penalties and face restrictions on its U.S. growth.

Under the expected agreement, TD Bank’s U.S. entity will likely plead guilty to criminal charges stemming from a DOJ investigation.

This settlement could be announced as early as today and involves multiple agencies, including the U.S. Department of Justice (DOJ), the Office of the Comptroller of the Currency (OCC), the Financial Crimes Enforcement Network (FinCEN), and the Federal Reserve.

According to the WSJ report, the DOJ and FinCEN are set to impose independent monitors to oversee the bank’s compliance with anti-money-laundering regulations. The ...