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US fines TD Bank $3.09 billion for money laundering, the largest fine in its history for this concept

The US authorities have imposed sanctions totalling $3.09 billion (2.829 billion euros) on TD Bank, a subsidiary of the Canadian Toronto-Dominion Bank, for violating anti-money laundering laws, in what has been the largest fine of this type in the country’s history.

The bank has pleaded guilty to the criminal charges brought, so, in addition to paying this amount, the US Federal Reserve (Fed) has ordered it to apply a series of “reinforced measures” aimed at complying with current legislation.

In this regard, TD Bank will transfer part of its anti-money laundering surveillance programme to the US and must certify before issuing dividends or distributing capital that “sufficient resources” are being allocated to correct the deficiencies detected when fighting this type of crime.

The US financial institution will also require it to carry out a “comprehensive and independent review” of the board of directors and its corporate management to ensure proper supervision of its US operations.

“TD Bank failed to carry out adequate risk management and supervision of its US retail banking operations, which resulted in the use of a US subsidiary to launder hundreds of millions of dollars in illicit proceeds,” the supervisor explained in a statement.

The accumulated fine, which in the case of the Fed has amounted to 123.5 million dollars (113.1 million euros), has been the result of the coordinated action of this body with the Department of Justice, the District Attorney’s Office of New Jersey, the Financial Crimes Enforcement Network of the Department of the Treasury (FinCEN) and the Office of the Comptroller of the Currency (OCC).

TD Bank had already set aside an amount similar to the final penalty, which required it to divest assets, including part of its stake in the Charles Schwab brokerage firm. TD Bank has more than 10 million customers in the US and about 1,200 branches, mainly on the East Coast.

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