- Chief Compliance Officer and VP of Legal Affairs, Arrow Electronics
By 
Aaron Nicodemus2024-10-11T13:44:00
TD Bank will pay nearly $3.1 billion in penalties to four U.S. regulators to settle charges that it “chose profits over compliance” when it allowed three money laundering networks to filter more than $670 million in dirty money through the company.
The 10th largest bank in the United States, Toronto-based TD Bank pled guilty in federal court Thursday to conspiracy to commit money laundering, failing to maintain an anti-money laundering (AML) program that complies with the Bank Secrecy Act (BSA), and failing to file accurate Currency Transaction Reports (CTRs) as required by the BSA.
TD Bank will pay $1.8 billion in forfeiture and fines to the Department of Justice (DOJ), the highest-ever fine of $1.3 billion to the Treasury Department’s Financial Crimes Enforcement Network (FinCEN), a $450 million penalty to the Treasury Department’s Office of the Comptroller of the Currency (OCC) and a $123.5 million fine to the Federal Reserve Board.
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Companies spend huge sums on audit, risk management, and compliance to alert them about potential legal issues before they escalate into serious corporate governance failings. There’s only one problem, however–they often misread their own early warning signs or ignore them altogether.
Law enforcement officials stumbled on TD Bank’s role in money laundering while investigating a Mexican drug cartel. They found that the bank’s corporate culture considered compliance, particularly BSA/AML compliance, a low priority. As they dug deeper, authorities discovered that multiple money laundering schemes had infiltrated the bank’s network.
TD Bank has set aside $2.6 billion to settle allegations made by U.S. regulators that deficiencies in its anti-money laundering program allowed fentanyl traffickers to launder money on its platform.
USAA Federal Savings Bank has been hit with its third cease and desist order from the Treasury Department’s Office of the Comptroller of the Currency in the past five years for failing to correct unsafe and unsound banking practices.
Becton Dickinson medical device company will pay $175 million for “repeatedly” misleading investors about its Alaris infusion pump, a product the company knew was flawed and was sold without the required patient-safety approvals, the Securities and Exchange Commission said.
The Securities and Exchange Commission charged bankrupt fashion retailer Express with failing to disclose nearly $1 million in perks to a former chief executive, but did not levy a financial penalty thanks to its cooperation, the SEC said.
