U.S. Bank Faces Historic $3.1 Billion Fine for Money Laundering Conspiracy

In a landmark case, the tenth-largest bank in the United States is set to pay a staggering $3.1 billion after making history as the first American bank to admit guilt in a money laundering conspiracy.

The American division of TD Bank has acknowledged its failure to adhere to the Bank Secrecy Act, agreeing to a hefty payout of $1.8 billion to the Department of Justice and $1.3 billion to the Financial Crimes Enforcement Network (FinCEN).

According to prosecutors, the bank’s oversight lapses allowed criminals, including drug traffickers, to transfer trillions of dollars without proper monitoring. In troubling revelations, some TD Bank employees reportedly assisted these illicit activities, accepting bribes in exchange for their complicity.

Despite repeated warnings from both regulators and its internal team regarding the flaws in its monitoring practices, the bank failed to make necessary improvements over several years. U.S. Attorney Philip R. Sellinger for the District of New Jersey described the situation as alarmingly negligent, stating that criminals were able to deposit vast sums of cash openly at the bank.

READ MORE:

Argentina Becomes Latin America’s Leading Hub for Cryptocurrency Inflows

Sellinger highlighted that TD Bank’s egregious oversight failures permitted vast amounts of illicit funds to flow through its systems, including transactions related to high-risk countries and peer-to-peer exchanges. He emphasized that the bank knowingly neglected the risks, especially regarding two major criminal networks that utilized its services to launder money.

Attorney General Merrick Garland underscored that the investigation is ongoing, stating, “TD Bank prioritized profits over lawful practices, and this decision is now resulting in billions in penalties. No individual involved in these illegal activities will be spared from scrutiny.”

Kosta Gushterov