TD Bank Fined $9.2M for Neglecting Suspicious Transaction Reports

Canada’s financial intelligence agency has imposed a $9.2 million penalty on The Toronto-Dominion Bank for breaching anti-money laundering and terrorist financing protocols, coinciding with ongoing compliance investigations in the United States.

The Financial Transactions and Reports Analysis Centre of Canada (Fintrac) announced the penalty, which follows previous fines of $7.5 million against RBC and $1.3 million against CIBC in December.

Fintrac cited TD for various shortcomings, including failure to report suspicious transactions when warranted, inadequate assessment and documentation of money laundering and terrorist financing risks, and failure to implement prescribed measures for high-risk cases.

This penalty against TD closely follows the bank’s revelation of a $450 million provision linked to the ongoing U.S. regulatory probe into its anti-money laundering compliance program.

The bank has stated that its conversations with three U.S. regulatory bodies and the Department of Justice are ongoing, and it expects further financial penalties.

TD acknowledged that its existing program lacked the capability to adequately oversee, identify, report, and address suspicious activities, and efforts are underway to address these shortcomings.