What happened
TD Bank pleaded guilty to multiple criminal charges Thursday and agreed to pay the Justice Department and financial regulators more than $3 billion for facilitating hundreds of millions of dollars in money laundering by drug smugglers, terrorists, human traffickers and other criminal organizations. Along with the record financial penalties, Canada’s No. 2 bank is prohibited from growing beyond its current size in the U.S. TD Bank is the 10th-largest U.S. retail bank, with more than 1,100 branches along the East Coast.
Who said what
The “flagrant” money laundering was “somewhat of an open secret” at TD Bank, The New York Times said, with managers making jokes about the activity and at least two employees taking bribes to enable it. “You guys really need to shut this down LOL,” one bank manager emailed a colleague, fruitlessly, according to charging documents. “TD Bank created an environment that allowed financial crime to flourish,” said Attorney General Merrick Garland. “By making its services convenient for criminals, it became one.” TD Bank’s outgoing CEO, Bharat Masrani, said the bank took “full responsibility” for the “failures” of its anti-money laundering program, and was working to fix them. “This is a sad day in our history, for which we are very regretful,” he said.
What next?
The Justice Department will get the “biggest slice of the penalties, some $1.8 billion,” while the Treasury’s Financial Crimes Enforcement Network nets $1.3 billion, The Wall Street Journal said. Both agencies ordered independent monitors to “watch the bank closely and ensure compliance” with its commitments.