TD Bank is facing a historic $3.22 billion fine after federal regulators found the bank had systemic failures in its anti-money laundering efforts. From 2018 to 2024, over 90% of TD Bank’s accounts went unmonitored, enabling drug cartels and criminal networks to launder more than $670 million, according to federal officials.
The bank has been ordered to pay $1.89 billion to the Department of Justice, $123.5 million to the Federal Reserve, $450 million to the Office of the Comptroller of the Currency, and $757 million to the Financial Crimes Enforcement Network (FinCEN). These fines represent the largest penalty ever imposed on a U.S. bank for money laundering violations.
Investigators found that TD Bank’s failures facilitated illegal activities, including drug trafficking and terrorism financing. Treasury Deputy Secretary Wally Adeyemo said the bank’s chronic oversights allowed “illicit activity to penetrate our financial system,” contributing to the crisis of fentanyl trafficking in the U.S.
The investigation began when federal agents uncovered that Chinese criminals laundered millions of dollars from fentanyl sales through TD Bank branches in New York and New Jersey. Despite being warned by FinCEN in 2013, the bank failed to correct the issues.
As part of the settlement, federal authorities will monitor TD Bank for the next four years to ensure it follows proper anti-money laundering procedures.
