TD Bank will reportedly pay $3 billion in fines for failing to monitor money laundering activities linked to drug cartels

TD bank is reportedly on the hook for $3 billion in fines and penalties after federal authorities exposed their alleged role in failing to prevent money laundering by drug cartels. The US Department of Justice and federal financial regulators reached the settlement after an in-depth investigation into the bank’s activities. The investigation focuses on allegations that TD Bank failed to properly monitor transactions, allowing drug traffickers to launder vast amounts of money, some of which were linked to the sale of fentanyl in the US.

As part of the settlement, TD Bank, the tenth largest U.S. bank by assets, agreed to growth restrictions imposed by the Office of the Comptroller of the currency (OCC). This restriction reflects sanctions imposed by Wells Fargo in 2018 due to widespread consumer abuse. The Wall Street Journal broke the story, reporting that Chinese organized crime groups and drug traffickers were funneling illicit profits through TD Bank.

In a statement, Acting Comptroller of the Currency Michael Hsu said: “TD Bank’s continued prioritization of growth over controls enabled its employees to break the law and facilitate the laundering of hundreds of millions of dollars. The bank’s blatant failure in risk management attracted illegal actors and is egregious and unacceptable.”

In addition to the $3 billion settlement, the Federal Reserve Board imposed a $124 million fine for violations of anti-money laundering laws, citing TD Bank’s failure to adequately oversee risk management. These mistakes allowed the bank’s U.S. subsidiary to be used to funnel hundreds of millions of dollars in illicit proceeds. The bank’s shares took a hit, falling more than 3% on Thursday afternoon.

This isn’t the first time TD Bank has gotten into trouble. Just last month, the Consumer Financial Protection Bureau fined the bank nearly $28 million for providing inaccurate information to credit reporting agencies and delaying correction of errors for more than a year.