Attorney General Merrick B. Garland has announced that TD Bank has pleaded guilty to multiple felonies, including conspiring to violate the Bank Secrecy Act and commit money laundering. The bank will pay a $1.8 billion criminal penalty, contributing to a total penalty of approximately $3 billion when combined with civil enforcement actions by other agencies.
"Today, TD Bank became the largest bank in U.S. history to plead guilty to Bank Secrecy Act program failures and the first U.S. bank in history to plead guilty to conspiracy to commit money laundering," stated Garland.
As part of the plea agreement, TD Bank will restructure its corporate compliance program at its U.S.-based bank, which is the 10th largest in the country. The bank will also be subject to a three-year monitorship and a five-year term of probation while continuing efforts to improve its anti-money laundering compliance program.
The Justice Department has prosecuted two dozen individuals for their involvement in money laundering schemes moving over $670 million through TD Bank accounts. Two employees have been charged for their roles in these activities.
Garland emphasized that federal anti-money laundering laws aim to prevent criminals from using U.S. banks for illegal activities. "Our laws dictate that the narcotics traffickers who flood our communities with deadly drugs cannot use American financial institutions to move their money," he said.
TD Bank admitted it failed to maintain an adequate anti-money laundering program between January 2014 and October 2023, allowing three networks to transfer over $670 million through its accounts.
The plea agreement requires TD Bank's full cooperation with ongoing investigations into its officers, directors, and employees. If non-compliance occurs, further criminal prosecution may follow using evidence from the plea agreement.
"The Department’s actions against both Binance and TD Bank are a reminder that financial institutions in this country have an obligation to guard against criminals exploiting their services," Garland noted.
Garland concluded by expressing gratitude towards various public servants and partners involved in handling this case before turning over proceedings to Deputy Attorney General Monaco.