TD Bank Approaches Potential Guilty Plea in Money Laundering Investigation, Reports WSJ

TD Bank is reportedly nearing a potential guilty plea regarding criminal charges related to its U.S. retail bank’s inadequate measures against money laundering associated with Chinese crime groups and illegal fentanyl distribution, as reported by the Wall Street Journal.

The Canadian bank, recognized as the second-largest in the country, is currently in discussions with U.S. federal prosecutors. According to sources familiar with the situation, the U.S. retail division of TD Bank is anticipated to submit a plea in approximately two weeks.

Neither TD Bank nor the U.S. Department of Justice responded immediately to requests for comment. The bank previously announced in May that it had initiated a thorough overhaul of its anti-money laundering program both in the U.S. and globally.

TD Bank mentioned at that time its investment of over C$500 million (approximately $400 million) in improvements to its compliance program and platform enhancements due to ongoing regulatory scrutiny regarding its money-laundering compliance in both Canada and the United States.

Allegations from U.S. authorities suggest that TD Bank was negligent in establishing and maintaining adequate systems to thwart money laundering, according to the Journal. The report also noted that the bank’s parent company has reserved more than $3 billion to address the costs associated with U.S. government investigations.

The investigation by the Department of Justice was initiated after agents discovered an operation in New York and New Jersey that laundered hundreds of millions of dollars derived from illegal drugs through TD Bank and other financial institutions.