TD Bank reportedly settles money laundering charges worth $3 billion

• TD Bank (TSX:TD) will reportedly pay approximately $3 billion in fines to settle a case with US regulators over its failure to monitor drug cartels’ money laundering activities
• Additional measures will likely include a US asset cap and regulatory scrutiny in the coming years
• TD Bank is the sixth largest bank in North America with C$1.97 trillion in assets as of July 31, 2024
• TD Bank shares are up 8.18 percent year-over-year and 18.10 percent since 2019

TD Bank (TSX:TD) will reportedly pay approximately $3 billion in fines to settle a case with US regulators over its failure to monitor drug cartels’ money laundering activities.

According to The Wall Street Journal, the bank is expected to plead guilty Thursday under an agreement that will also see its top regulator, the Office of the Comptroller of the Monetary Fund, impose a retail asset limit on the bank for operations within the United States. States. .

TD will be monitored by the U.S. Department of Justice (DOJ) and the Treasury Department’s Financial Crimes Enforcement Network to ensure compliance. A representative of the latter is expected to remain in office for four years.

Although TD has already set aside the $3 billion for the settlement, the asset ceiling could prove even more expensive given its long history of growth through acquisitions that have allowed it to amass more than 10 million customers and more than 1,200 branches. open all over the world. United States for almost two decades. Investors can learn more about the settlement during a conference call with the bank later Thursday.

The multi-billion dollar fine joins numerous other legal issues the bank has been facing recently, including a more than $20 million settlement with the DOJ, the Securities and Exchange Commission and the Financial Industry Regulatory Authority for manipulating the U.S. Treasury Bond Market, a $28 million fine ordered by the U.S. Consumer Financial Protection Bureau for filing fraudulent consumer reports, and at least four cases alleging serious financial crimes by employees at facilities in Florida, New York, and New Jersey committed.

About TD Bank

Toronto-Dominion Bank is the sixth largest bank in North America, with assets of C$1.97 trillion as of July 31, 2024. The bank serves more than 27.5 million customers across Canadian personal and commercial banking, U.S. retail banking, asset management and insurance, and wholesale banking.

TD Bank (TSX:TD) stock last traded at C$87.11 per share. The stock is up 8.18 percent year-on-year and 18.10 percent since 2019.

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(Top photo of a TD Bank branch on Wall Street in New York: Adobe Stock)