TD Bank faces scrutiny after paying US$3.1 billion in fines for money-laundering schemes
Democratic Senator Elizabeth Warren has raised questions with the US Department of Justice (DOJ) on its decision not to charge high-ranking executives at Toronto-Dominion (TD) Bank.
Her inquiry pertains to the institution’s failure to prevent money laundering, as reported by Financial Post.
Warren, in a letter addressed to Attorney General Merrick Garland and Deputy Attorney General Lisa Monaco, further questioned why the DOJ charged TD Bank with conspiracy to launder money rather than with direct money-laundering charges.
She distributed the letter Thursday after sending it on Wednesday.
A direct money-laundering charge would have triggered the ‘death penalty’ provision under the Office of the Comptroller of the Currency, Warren argued.
This provision would have obligated the regulator to issue a notice of intent to terminate TD Bank’s charter and hold a hearing over potential revocation.
“These charging decisions represent absurd legal gymnastics by DOJ that ultimately have allowed the bank and its top executives to avoid full responsibility for their actions,” Warren stated, adding, “This is not an acceptable outcome.”
TD Bank, which pleaded guilty to the conspiracy charge this month, will pay fines and penalties amounting to nearly US$3.1bn.
The bank will also face restrictions on expanding its retail-banking assets in the United States as a result of its involvement in three money-laundering schemes.
A representative for TD Bank declined to comment on Thursday, and DOJ representatives did not immediately respond to requests for comment.
According to prosecutors, TD Bank’s anti-money-laundering program failed significantly in detecting and reporting suspicious activities to financial authorities, further implicating the bank’s role in the schemes.
