TD Bank Fined $3 Billion for Drug Cartel Money Laundering Failures

October 10th, 2024

TD Bank has agreed to pay a record $3 billion fine for failing to monitor money laundering activities connected to drug cartels. The settlement includes $1.3 billion to the Treasury Department and $1.8 billion to the Department of Justice. U.S. authorities found that the bank allowed over $670 million to be laundered through its accounts due to systemic deficiencies. TD Bank will face growth restrictions in the U.S. and heightened scrutiny of its anti-money laundering procedures as part of the settlement.

The bank's CEO, Bharat Masrani, apologized, acknowledging the failures occurred during his tenure. TD Bank will hire over 700 specialists to strengthen its financial crime prevention efforts and undergo four years of monitoring by federal regulators. This fine marks one of the most significant penalties in recent history for a financial institution, highlighting the ongoing issues of cartel-related money laundering in the U.S. banking system.