TD Bank Fined Record $3.22 Billion For Money Laundering Scandal

TD Bank has agreed to pay a $3.22 billion fine after federal regulators found it failed to stop drug cartels and other criminal organizations from laundering hundreds of millions of dollars through its accounts. The investigation revealed that between 2018 and 2024, over 90% of the bank’s accounts were not properly monitored, enabling more than $670 million to be funneled through its system by multiple money-laundering networks.

The penalties include $1.89 billion to the Department of Justice, along with additional payments to the Federal Reserve and the Office of the Comptroller of the Currency. The Treasury’s Financial Crimes Enforcement Network (FinCEN) will also receive $757 million from the bank. According to CNN, this is the largest fine of its kind ever levied against a U.S. bank.

TD Bank’s shortcomings allowed criminals involved in fentanyl trafficking and human trafficking to exploit the system. Treasury Deputy Secretary Wally Adeyemo called the bank’s failings “long-term and pervasive,” highlighting the dangerous consequences of its lack of oversight.

The investigation was sparked when federal agents found that Chinese criminals had bribed bank employees to help launder millions of dollars from drug sales. Despite being warned by FinCEN in 2013 about similar issues, the bank failed to act, leading to today’s historic penalty.

Federal officials will oversee TD Bank for the next four years to ensure that these lapses in compliance do not continue.