Major Bank Fined Billions For Drug Cartel Money Laundering Failures
TD Bank has been slapped with a record $3.22 billion fine for failing to prevent drug cartels and other criminal networks from laundering money through its accounts. Between 2018 and 2024, more than 90% of the bank’s accounts were left unmonitored, allowing over $670 million to be funneled through the financial system by three money-laundering networks, according to federal investigators.
The penalties include $1.89 billion to the Department of Justice, $123.5 million to the Federal Reserve, and $450 million to the Office of the Comptroller of the Currency. Additionally, TD Bank will pay $757 million to the Financial Crimes Enforcement Network (FinCEN). These fines mark the largest penalty of its kind in U.S. banking history.
Investigators say TD Bank’s oversight failures allowed illegal activities such as fentanyl trafficking, terrorist financing, and human trafficking to flourish. Deputy Secretary of the Treasury Wally Adeyemo noted that the bank’s “chronic failures” provided an environment for criminals to exploit the U.S. financial system.
The investigation was triggered when federal agents discovered Chinese criminals using TD Bank branches in New York and New Jersey to launder millions in drug proceeds. Although the bank had been previously warned by FinCEN in 2013, it failed to address ongoing issues, leading to the latest fines.
Despite knowing about suspicious accounts, bank executives took no action to correct the situation. As a result, billions of illicit dollars flowed through TD Bank accounts over several years. Federal authorities will now monitor the bank’s activities for the next four years to ensure compliance.
