TD Bank Sets Aside $450 Million for Possible U.S. Anti-Money Laundering Penalties — Update
By Paul Vieira
TD Bank said it would set aside $450 million for fines it is likely to face from U.S. regulators because of weaknesses with its anti-money laundering practices.
Canada's second-largest bank by market capitalization said Tuesday the provision is related to talks with one U.S. regulator. Bank officials are in talks with two other regulators, and TD said the initial provision doesn't reflect other financial or non-monetary penalties that the lender could face.
"The bank anticipates additional monetary penalties," TD said in a statement. The bank added its anti-money laundering program "was insufficient to effectively monitor, detect, report, and respond to suspicious activity. Work has been underway to remedy these deficiencies."
The Wall Street Journal reported last year that TD Bank's handling of suspicious customer transactions was behind the refusal by regulators to clear the Canadian lender's deal to buy First Horizon.
TD Bank initially disclosed in August that it was responding to inquiries from regulators and law-enforcement agencies about its anti-money laundering compliance program, "both generally and in connection with specific clients, counterparties or incidents in the U.S." The bank said at least some of the inquiries were related to an investigation by the U.S. Justice Department.
Write to Paul Vieira at paul.vieira@wsj.com
(END) Dow Jones Newswires
April 30, 2024 18:30 ET (22:30 GMT)
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