TD confirms $3.09B settlement of anti-money laundering investigations

TD Bank announced that it has reached a resolution of previously disclosed investigations related to its U.S. Bank Secrecy Act and Anti-Money Laundering compliance programs. The Bank and certain of its U.S. subsidiaries have consented to orders with the Office of the Comptroller of the Currency, the Federal Reserve Board, and the Financial Crimes Enforcement Network and entered into plea agreements with the Department of Justice, Criminal Division, Money Laundering and Asset Recovery Section and the United States Attorney’s Office for the District of New Jersey. Details of the resolution include a total payment of a $3.09B, largely covered by previous provisions of $3.05B and requirements to remediate the bank’s U.S. AML program, TD said. The total assets of TD’s two U.S. banking subsidiaries cannot exceed $434B, it added. “Plans are in place to address the requirements and limitations contained in the consent orders, including adjustments to the Bank’s U.S. balance sheet. These actions will provide the asset capacity required to serve and support U.S. customers’ financial needs without interruption, now and into the future,” TD explained. “We have taken full responsibility for the failures of our U.S. AML program and are making the investments, changes and enhancements required to deliver on our commitments. This is a difficult chapter in our Bank’s history. These failures took place on my watch as CEO and I apologize to all our stakeholders,” said Bharat Masrani, CEO.