Historic settlement for what it has done

The latest news this month is that TD Bank will reach a historic settlement with US authorities. TD bank is one of Canada’s largest lenders and is being sued by the US for allowing drug cartels and other criminals to transfer hundreds of millions of dollars in illicit funds through money laundering schemes, according to media outlets such as BBC or CNN. TD is the sixth largest bank in North America by assets, serving more than 27.5 million customers worldwide.

Historic settlement with authorities over criminal activities

TD Bank pleaded guilty to criminal money laundering charges and plans to pay a $3 billion settlement to U.S. authorities. “TD Bank created an environment where financial crime could flourish,” said Attorney General Merrick Garland. “By making its services easy for criminals, it became one.” TD Bank is the largest North American bank to plead guilty to such charges.

The bank had turned a blind eye to them lack of anti-money laundering policy and security to the point where employees would reportedly joke about how easy it was to launder money through TD Bank. High-level executives were reportedly made aware of the problem, but no change was made to stop the criminal activity.

TD Banks has failed to prevent money laundering for almost a decade

Reportedly, no action was taken against the illegal activities for almost a decade, despite clear criminal activity taking place. One such incident involved a customer depositing $1 million in cash daily. The $3 billion settlement is one of the largest fines a bank has ever had to pay. In addition, they face limitations to their growth in the US. TD Bank has reportedly taken “full responsibility” for their failure to enforce anti-money laundering laws.

Money laundering refers to a process by which money earned through criminal activity appears legitimate. This usually involves introducing illegal funds into banks or using the money to buy assets. The money is then sent through a series of complex transactions to trace its origin. The money is then reintroduced into the economy as ‘clean money’, with the illicit source hidden. Most of the largest money laundering schemes in recent times have been carried out by the banks themselves, but individuals have also managed to launder significant amounts of money.

TD Bank is taking steps to resolve the situation

TD Bank has already taken action to correct the money laundering activities. They have hired 700 new employees who specialize specifically in the problem and are currently “implementing the investments, changes and improvements necessary to meet our commitments”. “This is a difficult chapter in the history of our bank. These failures occurred under my watch as CEO and I apologize to all our stakeholders,” said CEO Bharat Masrani. Masrani will retire in 2025 after ten years as CEO of TD Bank Group.

“We know what the problems are, we solve them. As we move forward, we will ensure this never happens again,” Masrani said. “And I am 100% confident that we will reach the other side and come out even stronger.” About $670 million were passed through TD Bank through at least three different money laundering networks.

TD Bank is the largest lender in U.S. history to plead guilty to failures under the Bank Secrecy Act and the first to plead guilty to conspiracy to commit money laundering, the U.S. Department of Justice said. “From fentanyl and narcotics trafficking to terrorist financing and human trafficking, TD Bank’s chronic failures have provided fertile ground for a host of illicit activities to infiltrate our financial system,” said Deputy Treasury Secretary Wally Adeyemo .

One person reportedly moved more than $470 million in drug proceeds and other illegal funds through TD Bank branches. The institution has become the bank of choice for criminal activities and money laundering.