TD Bank became the largest bank in U.S. history to plead guilty to violating a federal anti-money laundering law and agree to pay more than $3 billion in penalties to settle the problem, Reuters reported. quoted by BTA.
The plea deal, which includes a rare imposition of property sanctions and other business restrictions, is the result of multiple government investigations into what authorities describe as widespread problems.
TD Bank shares were down nearly 5% yesterday afternoon.
For years, TD Bank has ignored signals about high-risk customers and created a "comfortable“ an environment for bad players to take advantage of, the government said.
In one example, authorities allege TD Bank facilitated more than $400 million in money-laundering transactions on behalf of people selling fentanyl and other deadly drugs.
TD Bank is the second largest bank in Canada and the tenth largest in the United States.