Report: TD Bank to Pay $3 Billion in Fines and Limit Growth in DOJ Settlement

• It is reported that TD Bank is expected to pay $3 billion in fines and other penalties to the Department of Justice and financial crimes regulators to settle a federal investigation into its alleged failure to monitor money laundering by drug cartels.
• The Wall Street Journal reports that TD Bank will accept restrictions on its growth as part of the settlement.
• The Federal Reserve imposed similar growth restrictions on TD Bank as they did on Wells Fargo in 2018.

The Department of Justice and financial crimes regulators are reportedly expected to receive a $3 billion fine from the company for its failure to monitor money laundering by drug cartels.

The Wall Street Journal reported on Wednesday night that TD Bank, the 10th-largest American bank by assets, will face limits on its growth as part of a settlement.

The Federal Reserve imposed similar restrictions on TD Bank's growth as it did on Wells Fargo in 2018 due to "widespread consumer abuses" at that bank.

TD Bank was fined over $124 million by the Federal Reserve Board on Thursday for violations related to anti-money laundering laws. The bank failed to properly manage and oversee its retail banking operations in the US, resulting in a subsidiary being used to launder hundreds of millions of dollars in illicit proceeds.

TD Bank shares were down more than 3% midday Thursday.

A representative from TD Bank, a major Canadian financial institution, declined to provide a statement regarding the WSJ report.

In May, the newspaper reported that the DOJ was probing how Chinese crime syndicates and drug dealers utilized TD Bank to launder funds obtained from the sale of fentanyl in the US.

In September, TD Bank was directed to pay approximately $28 million by the Consumer Financial Protection Bureau due to consistently providing consumer reporting agencies with inaccurate information about their customers and taking over a year to rectify the errors, despite being aware of them.

TD Bank faces $3 billion in penalties and growth restrictions in a US settlement.

This is developing news. Check back for updates.