American TD bank will pay three billion dollars because it did not monitor money laundering in the prescribed manner drug cartel, the regulators announced.
That amount includes a $1,3 billion fine to be paid to the U.S. Treasury Department, a record fine for a bank, and $1,8 billion to be paid by TD Bank to the Justice Department after pleading guilty to charges of violating The Bank Secrecy Act also allowed money laundering, reports CNN.
The Justice Department said in a statement that TD Bank has "long-term, pervasive and systemic deficiencies" in its transaction monitoring procedures. More than 90 percent of transactions were not monitored between January 2018 and April 2024, which "allowed three money laundering networks to transfer more than $670 million through TD Bank accounts," the statement said.
In one case, TD Bank employees received gifts worth more than $57.000 to keep more than $470 million in cash deposits out of money laundering controls and not be reported in mandatory reports, the Justice Department said.
In a related statement, the Office of the Comptroller, the U.S. agency that regulates banks, said such processing of transactions amounting to hundreds of millions of dollars represented "highly suspicious activity" by TD Bank.
Last year, TD Bank paid $1,2 billion to settle a lawsuit alleging it was involved in an infamous $XNUMX billion Ponzi scheme orchestrated by notorious financier Allen Stanford more than a decade ago.
The money was used to pay victims of the scheme, but the bank denied at the time any wrongdoing.
Source: Phonet
