Deputy Secretary of the Treasury Wally Adeyemo addressed a press conference at the Department of Justice, highlighting significant actions taken against TD Bank. Adeyemo emphasized the role of the Department of the Treasury in using sanctions and enforcing anti-money laundering (AML) laws to protect national security.
Adeyemo noted, "The Department of the Treasury utilizes sanctions and the enforcement of our country’s anti-money laundering (AML) laws to protect our national security from illicit actors." He further stated that most financial institutions collaborate with the Treasury to ensure safety. However, he criticized TD Bank for failing to meet its responsibilities over more than a decade.
According to Adeyemo, "TD Bank failed to implement or maintain a sufficient AML compliance program," which included not monitoring trillions in transactions annually and neglecting due diligence on high-risk customers. These failures reportedly resulted in harm to American citizens and communities.
He cited specific instances where TD Bank allegedly facilitated illegal activities. "The bank enabled drug trafficking," Adeyemo said, referencing an investigation by FinCEN that found TD Bank involved in laundering over $400 million for criminals dealing in fentanyl and other drugs. Additionally, TD Bank employees were accused of accepting bribes for filing false reports.
In response, FinCEN has imposed a $1.3 billion penalty on TD Bank, marking it as the largest civil monetary penalty against a bank in Treasury's history. Besides this financial penalty, TD Bank is subjected to a four-year monitor overseeing remedial measures and additional accountability reviews.
"This action demonstrates that we are committed to holding individuals and institutions accountable," Adeyemo concluded while expressing gratitude towards various agencies for their collaborative efforts in enforcing laws and protecting national security.
