TD Bank faces a $3 billion fine

TD Bank’s US entity is in deep trouble with the US government and is expected to be hit with $3 billion in fines today and will accept restrictions on its growth in the US. This all stems from allegations that the bank failed to properly police money laundering by drug cartels.

The bank, the U.S. subsidiary of its Canadian parent, Toronto Dominion Bank, is expected to plead guilty to criminal charges as a result of a Justice Department investigation, the Wall Street Journal reports.

In addition to fines and sanctions, the bank’s retail operations will be capped and placed under the supervision of the Treasury Department’s Financial Criimes Enforcement Network, the report said.

Chief Executive Bharat Masrani issued a statement in August expressing regret over the bank’s alleged misdeeds and later announced he would resign.

“We recognize the seriousness of the shortcomings of our U.S. AML (anti-money laundering) program and the work required to meet our obligations and responsibilities is of the utmost importance to me, our senior leaders and our boards of directors” , said Masrani.

TD is Canada’s second-largest bank and has big ambitions for its U.S. unit, which just a few days ago was named the “best digital consumer bank in North America” ​​by a trade magazine.

The investigation into TD’s U.S. business practices began after agents discovered that a Chinese criminal operation was laundering proceeds from fentanyl sales through TD branches in New York and elsewhere, bribing bank employees to help, the Journal reported.