In a shocking revelation that has drawn the attention of global law enforcement, the Canadian Toronto-Dominion Bank (TD Bank) has been implicated in a significant money laundering operation tied to the international drug trade. The case, which surfaced through meticulous surveillance operations in Queens, New York, involved hundreds of millions of dollars laundered through TD Bank over several years, The Globe and Mail reports.
In January 2021, U.S. authorities tracked a series of transactions starting in a supermarket parking lot and culminating in multiple cash deposits at various TD Bank branches. The operation was conducted by a criminal ring using sophisticated methods to launder money, including multiple vehicles and quick bank branch visits to deposit large sums of cash.
The U.S. investigation identified over $653 million laundered from 2016 to 2021, highlighting a critical lapse in TD Bank‘s anti-money laundering (AML) protocols. This breach comes despite the bank’s efforts to enhance its AML systems, involving an investment of $500 million and hiring new AML professionals with robust expertise.
TD Bank‘s CEO, Bharat Masrani, acknowledged the deficiencies in their AML strategies, stating that the failures to monitor, detect, and report suspicious activities were “unacceptable” and contrary to the bank’s values.
The revelations have profound implications for TD Bank‘s business activities. Financial analysts predict potential fines of upwards of $2 billion and possible regulatory restrictions on their operations. These developments have already affected TD Bank’s stock, which saw a significant drop following the news.
The broader geopolitical implications are also significant, as the criminal network spans several countries, including China, Mexico, and Russia, highlighting a complex international challenge. The laundered funds have enabled drug traffickers to expand their operations globally, contributing to a surge in drug-related violence and overdose deaths.
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