TD Bank said it set aside $450 million to settle regulatory and law enforcement investigations into its anti-money laundering (AML) and Bank Secrecy Act (BSA) programs.
The bank, which previously disclosed the existence of the investigations by the Department of Justice (DOJ) and other U.S. regulators, said in a press release Tuesday it is negotiating the size of the penalty.
“The bank’s regulatory and law enforcement discussions with three U.S. regulators … and the Department of Justice are ongoing. The bank anticipates additional monetary penalties,” it said. “This provision does not reflect the final aggregate amount of potential monetary penalties or any nonmonetary penalties, which are unknown and not reliably estimable at this time.”
TD Bank said in the release the 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.
TD Bank is also reportedly under investigation by its Canadian regulator, the Financial Transactions and Reports Analysis Centre of Canada (FINTRAC), for faulty AML controls. In that investigation, FINTRAC reportedly might levy its largest ever fine at more than 10 million Canadian dollars (U.S. $7.3 million).
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