TORONTO, Canada—Toronto-Dominion (TD) Bank may face fines of up to $4 billion following new allegations tied to U.S. money-laundering investigations.
According to BNN Bloomberg, the estimate doubles previous assessments of the impact on Canada’s second-largest lender.
The Department of Justice, bank regulators, and the U.S. Treasury Department are investigating TD over allegations of money laundering and other financial crimes at several of the bank’s US branches, Wealth Professional reported.
A former TD Bank branch employee in Florida allegedly accepted $200 bribes to help clients transfer millions to Colombia, bypassing anti-money-laundering protocols. This case, first reported by Bloomberg News, is one of several involving TD Bank, Wealth Professional said.
New York Case Cited
Another recent case involved a former New York branch employee who admitted to evading the bank’s compliance measures to defraud a customer, Wealth Professional said.
The report cited analysts with Jeffries stating, “While our previous estimate for the regulatory fines was at $2bn, given that a third AML issue has been reported, we now believe that this estimate could be low. Although a $4-billion fine does seem a bit high at this juncture, we cannot deny that it is still within the realm of possibilities, potentially eroding all of TD’s current excess capital.”
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