The U.S. Department of the Treasury’s Financial Crimes Enforcement Network (FinCEN) has levied a historic $1.3 billion penalty against TD Bank for violations of the Bank Secrecy Act (BSA), the primary U.S. anti-money laundering law. This settlement, the largest in U.S. Treasury and FinCEN history, highlights the severity of TD Bank’s shortcomings in implementing and maintaining an effective anti-money laundering program.
One of the key failures of TD Bank was its inability to properly monitor and report suspicious transactions, including those related to illicit activities such as human trafficking and narcotics trafficking. The bank’s lax oversight allowed for trillions of dollars in transactions to go unmonitored, compromising the integrity of the financial system and hindering law enforcement efforts.
In addition to the financial penalty, TD Bank has agreed to engage an independent consultant to conduct a thorough review of its AML program and address the root causes of its compliance failures. This marks a significant step towards ensuring that financial institutions uphold their obligations to safeguard against criminal activity.
The enforcement action against TD Bank serves as a powerful reminder that institutions must take their anti-money laundering responsibilities seriously and implement robust compliance measures to protect against illicit finance risks. Failure to do so can have severe consequences, as evidenced by the record-breaking penalty imposed on TD Bank.
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