TD Bank Hit with Record $3 Billion Penalty for Money Laundering Failures

The penalties include a cap on U.S. growth and a mandate to overhaul its compliance program following systemic anti-money laundering lapses.

TD Bank pleaded guilty to conspiring to violate the Bank Secrecy Act and money laundering, marking the largest penalty ever under the Act.
The bank's deficiencies allowed over $670 million in illicit funds to flow through its accounts, involving three major money laundering networks.
Senior executives prioritized growth over compliance, leading to pervasive failures in anti-money laundering practices since 2014.
U.S. regulators imposed non-monetary penalties, including an asset cap and restrictions on opening new branches or products without approval.
TD Bank must implement a comprehensive compliance overhaul and cooperate with ongoing investigations into individual employees.