Today, Deputy Attorney General Lisa Monaco announced that TD Bank has pleaded guilty to charges related to the Bank Secrecy Act and money laundering conspiracy violations. The bank will pay a $1.8 billion penalty, marking the largest penalty ever imposed under the Bank Secrecy Act.
Monaco emphasized that this case serves as a warning to corporate entities about accountability. "This case should serve as a warning and a reminder that we will hold corporate wrongdoers accountable, no matter their size or stature," she stated.
The charges highlight TD Bank's failure to maintain compliance with the Bank Secrecy Act requirements, which include robust anti-money laundering programs and reporting suspicious activities. Despite being one of North America's largest banks, TD Bank neglected these responsibilities over nearly a decade. "Even as profits rose, the bank starved its compliance program of the resources it needed to obey the law," said Monaco.
The bank's shortcomings allowed employees to exploit these failures for money laundering activities. Five employees were involved in laundering millions of dollars to Colombia, leading to felony convictions both within and outside the bank.
Monaco pointed out that federal regulators began penalizing TD Bank for lack of controls back in 2013, but improvements were not made. She stressed the importance of compliance for financial institutions: "Every bank compliance official in America should be reviewing today’s charges as a case study of what not to do."
Today's resolution also requires TD Bank to overhaul its compliance program and retain an independent monitor. The bank must report misconduct and cooperate with ongoing investigations into those responsible within its ranks.
Monaco concluded by reiterating her stance on corporate strategies prioritizing profit over compliance: "A corporate strategy that pursues profits at the expense of compliance isn’t a path to riches; it’s a path to federal prosecution."