TD Bank Pleads Guilty, Fined $3B, AUM Capped

Kevin Travers joined discussion · Oct 11, 2024 02:15

$The Toronto-Dominion Bank (TD.US)$ fell 5% Thursday after the Canadian bank pled guilty to violations of the Secrecy Act and and money laundering charges. According to Bloomberg, two of the bank's U.S. subsidiaries plan to plead guilty in a Newark NJ courtroom for failing to maintain anti-money laundering programs. The bank will pay $3B in fines.

TD Bank Pleads Guilty, Fined $3B, AUM Capped

Prosecutors have alleged the bank has failed to catch money laundering and financial crimes at branches in NY, NJ, and Florida. The bank can not increase its assets under management or open new branches until "the order is lifted," according to Market Watch. As of March 2024, TD Bank held about $369B AUM, according to MarketWatch's Largest Banks in the U.S. list.

Speaking Thursday, U.S. Attorney General Merrick Garland said TD is the largest bank in U.S. History to plead guilty to the Bank Secrecy Act. TD Bank agreed to a five-year probation.

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