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TD Bank fined $9.2 million by watchdog

Canada’s financial intelligence agency fines TD as bank faces more US compliance investigations

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Toronto-Dominion Bank, which is in the midst of several investigations into its anti-money laundering controls in the United States, has been fined nearly $9.19 million for several cases of non-compliance with the Consumer Products Act. Canada crime (Money Laundering Act) and Terrorist Financing.

Canada’s Financial Transactions and Reports Analysis Center found that Canada’s second-largest bank failed to file suspicious transaction reports when there were reasonable grounds to suspect the transactions were related to a money laundering offense or the financing of terrorist activities.

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In a statement, FINTRAC noted that the sanctions were imposed for administrative violations and there was no criminal charge for money laundering or financing of terrorist activities.

Other administrative violations included failing to assess and document the risks of money laundering or financing of terrorist activities, failing to conduct ongoing monitoring of business relationships, and failing to maintain a record of actions taken and information obtained by conducting ongoing monitoring of relationships. commercial, and not taking the prescribed special measures. Measures for high risk.

The fine comes just days after TD said it was setting aside $450 million in connection with an ongoing US regulatory investigation into its anti-money laundering controls. The bank said the provision does not reflect the final aggregate amount of potential monetary or other penalties, as regulatory investigations, including one by the U.S. Department of Justice, are ongoing. Analysts had suggested that financial sanctions in the United States could reach $1 billion, but National Bank analyst Gabriel Dechaine said in a note to his clients on Tuesday that the preliminary amount set aside suggests that estimate could be exceeded. .

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Canadian regulators have been less aggressive in enforcing controls related to money laundering, but FINTRAC stepped up its activity late last year.

In December, Royal Bank of Canada was ordered to pay almost $7.5 million for administrative violations under the Proceeds of Crime (Money Laundering) and Terrorist Financing Act and associated regulations, which was at the time the largest penalty imposed by FINTRAC. RBC issued a statement saying that although the bank did not appeal the assessment, it believed the fine was “not at all proportional to an administrative matter in which there is no connection to money laundering or terrorist financing offences” and “is not found someone to exercise their judgment.” in bad faith or knowingly contributed to violations.”

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Shortly after the RBC sanction was announced, FINTRAC announced a $1.3 million sanction against Canadian Imperial Bank of Commerce, also in connection with administrative violations of the anti-money laundering law.

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