Money-laundering probe faces billions of dollars in fines for Canada’s second-biggest bank

Due to its suspected participation in money-laundering operations, Canada’s second-largest bank, Bank, is about to face stiff penalties from financial authorities. Analysts predict that the fines may reach the billions, which would be a serious setback to the bank’s business and image. According to a notice sent to customers, TD Bank may be subject to penalties of up to $2 billion, according to The Toronto Star.

It is anticipated that the bank’s operations may be affected by these impending fines, which might be both monetary and non-monetary in character. The Canadian Daily claims that TD Bank is not the only bank under investigation for possible money laundering. The nation’s financial crime agency has lately fined other big banks, like CIBC and RBC, for failing to implement adequate anti-money laundering procedures.

The US Justice Department is now looking into claims that Chinese drug traffickers used TD Bank’s services to launder money from the sale of fentanyl, which has dealt serious damage to the bank’s image. These traffickers reportedly paid TD Bank workers to help with their illegal activities, according to a Wall Street Journal story from earlier. Now embroiled in a significant drug-related money laundering controversy is TD Bank, the second-biggest bank in Canada. may be fined billions of dollars. Lesson: If you promote poor behavior in one area, it will manifest itself in all other domains, said Sanjeev Sanyal, the Indian government’s principal economic advisor, in a post on X.

Since US authorities stopped the sale of First Horizon Bank to TD last spring on concerns about suspicious client activities, the disclosures of possible money laundering linkages have clouded TD Bank. Up until lately, TD Bank has kept a low profile about the ongoing investigations despite them. TD Bank said earlier in April that it has put aside $450 million in reserves to meet any fines that could be levied by US authorities.

Furthermore, TD Bank was fined $9.2 million by Canada’s financial crime agency, Fintrac, for violating anti-money laundering and counterterrorism funding regulations. Fintrac disclosed that TD Bank had failed to disclose transactions that were suspicious or connected to illegal activity; the bank has already fully compensated for this infraction.