Canadian lawmakers will come together to discuss TD Bank’s reported failure to prevent drug traffickers from laundering proceeds of fentanyl sales on its platform.
The Canadian House of Commons scheduled a hearing Friday before its Standing Committee on Finance to “discuss the recent revelations regarding TD Bank Group and allegations of failing to report money laundering related to the trafficking of the illegal hard drug fentanyl and other money laundering violations across the financial sector in Canada.”
The planned meeting represents the latest scrutiny Canada’s second largest lender has faced regarding alleged deficiencies in its anti-money laundering (AML) program.
The Financial Transactions and Reports Analysis Centre of Canada fined TD Bank nearly 9.2 million Canadian dollars (then-U.S. $6.7 million) on May 2 for failing to comply with its AML regulations. It was the largest fine ever levied by the regulator.
On April 30, TD Bank disclosed it set aside $450 million to settle allegations it violated AML and Bank Secrecy Act rules in the United States. The bank said it is involved in ongoing resolution discussions with U.S. agencies, including the Department of Justice (DOJ).
A DOJ investigation into TD Bank is examining how Chinese drug traffickers and crime groups used the bank to launder the proceeds of illegal fentanyl sales, the Wall Street Journalreported.
TD Bank said U.S. regulators determined its AML program “was insufficient to effectively monitor, detect, report, and respond to suspicious activity.” Remediation of the alleged deficiencies is underway, the bank said.
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