This short LinkedIn post is a reminder to financial institutions operating in the US and potentially other countries where enforcement is not as strong or expensive, that they need to be supporting compliance obligations. This includes committing to and putting the effort and resources into training frontline staff to look out for anything suspicious before automatically processing it as if it was a simple food order at a drive-through restaurant.
It is clear here Mr. Magdi wants to remind everyone on LinkedIn what happened in regard to this Department of Justice $3 billion fine even though it was brought down in 2024. As he says in his post, “Authorities stressed that underfunding compliance leads catastrophic damage.”
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🇨🇦 TD Bank fined $3B for AML failures
In October 2024, US authorities fined TD Bank $3 billion following systemic anti-money laundering failures spanning nearly a decade. Investigators revealed that the bank failed to adequately monitor trillions of dollars in transactions, allowing international drug cartels to launder hundreds of millions of dollars undetected. To address these catastrophic control breakdowns, the enforcement action mandated sweeping remediation programs, the appointment of an independent compliance monitor, and the implementation of a strict asset cap that restricts the bank’s US expansion until all structural deficiencies are fully resolved.
These included:
■ Processing illicit funds for drug cartels
■ Ignoring high-risk customer red flags
Authorities stressed that underfunding compliance leads to catastrophic damage.
The settlement:
■ $3 billion penalty
■ US asset cap imposed
Source: justice.gov
#AML #AntiMoneyLaundering #FinancialCrime #FinCrime #Compliance
