TD Bank in Talks About Money Laundering Plea

TD Bank The company is reportedly close to a possible appeal related to its anti-money laundering measures.

The Canadian bank is currently negotiating with U.S. prosecutors over the agreement, which stems from criminal allegations that its American arm failed to prevent money laundering, according to the Wall Street Journal (WSJ). reported Friday (September 27th).

The request could come in the next two weeks, the report said, citing sources with knowledge of the matter. According to these sources, the authorities accuse the bank of negligence for failing to take appropriate measures to combat money laundering.

The report said the U.S. Department of Justice began investigating TD’s money laundering controls after learning that a Chinese criminal enterprise was laundering hundreds of millions of dollars in drug sales through the bank’s New York and New Jersey branches and TD- bribed employees.

PYMNTS has reached out to TD for comment but has not yet heard back.

TD reported quarterly results last month reported a provision of $2.6 billion in connection with a possible investigation into its anti-money laundering (AML) program. This came after the bank announced a $450 million provision in the previous quarter.

The bank said it was working on a ““Rehabilitation” of its AML program in light of the federal investigation. Earlier this year, the bank fired more than a dozen employees and brought criminal charges and disciplinary action against some of them.

And as PYMNTS wrote earlier this summer, these actions come amid increasing scrutiny of AML practices at financial firms.

“And where these companies, including banks and FinTechs, are considered too short“There is a (literal) price to pay,” the report said. “In the meantime, the actual anti-money laundering and anti-fraud rules may change, as a comment period is currently underway in which regulators are seeking opinions on the use of advanced technologies to improve fraud defenses at financial institutions.”

Meanwhile, the bank announced earlier this month that President and CEO Bharat Masrani will do so retiring in April next year, with Raymond Chun, currently group head of Canadian retail banking, set to take his place.

“The anti-money laundering challenges we face occurred under my watch as CEO and I take full responsibility,” Masrani said in a statement announcing his resignation. “In the coming months, I will continue to advance and lead the critical recovery program required to meet our obligations and responsibilities and strengthen our risk and control base.”

The manager led the bank for more than a decade and was at TD for almost 40 years. He will continue to be available to the bank as an advisor until October 31, 2025.