FINTRAC Hits TD Bank with Fine of $9 Million (CAD)

FINTRAC has hit The Toronto-Dominion Bank with a fine of$9,185,000 for non-compliance and being in violation of the Proceeds of Crime and Terrorist Financing Act, the primary Canadian regulations that regulate money laundering. This action against Toronto Dominion is part of a wider reaching international probe attached to a United States Department of Justice investigation into the bank’s role in laundering hundreds of millions of dollars.

FINTRAC’s investigation uncovered multiple clear anti-money laundering failures and concluded that Toronto Dominion Bank:

-Failed to submit suspicious transaction reports

-Failed to assess and document money laundering/terror activity and financing risks

-Failed to conduct adequate continuous monitoring of business/client relationships

-Failed to keep adequate records of its ongoing financial relationships

Sarah Paquet, Director and CEO of FINTRAC, stated, “Canada’s Anti-Money Laundering and Anti-TerroristFinancing Regime is in place to protect the safety of Canadians and the security of Canada’s economy. FINTRAC will continue to work with businesses to help them understand and comply with their obligations under the Act. We will also be firm in ensuring that businesses continue to do their part and we will take appropriate actions when they are needed.” 

Beyond the Canadian Government’s enforcement action, this egregious failure of compliance in preventing the bank from becoming a mechanism to launder ill-gotten gains is part of a longer history for Toronto Dominion.  As some will recall, just last year, TD paid a $1.2 billion USD settlement for its role in a 2009 $7.2 billion Ponzi scheme by  disgraced Texas “financier” Allen Stanford, although the bank vehemently denied any wrongdoing.

Despite the Canadian Government’s actions, the United States Department of Justice will likely pursue a significantly higher monetary penalty for the banks AML failures and potential criminal conduct.  TD has already braced for the impact of a wider DOJ investigation according to filings from last year.

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