TD takes AML hit of $450m with further penalties to follow image credit: shutterstock

TD Bank has taken an initial provision of $450m in connection with discussions with one of its US regulators. The issue relates to previously disclosed regulatory and law enforcement investigations of TD’s US Bank Secrecy Act/anti-money laundering programme.

Moreover, TD has cautioned that it anticipates additional monetary penalties. TD said that the initial provision of $450m “does not reflect the final aggregate amount of potential monetary penalties or any non-monetary penalties, which are unknown and not reliably estimable at this time.”

Go deeper with GlobalData

Data Insights

The gold standard of business intelligence.

Find out more

The bank’s regulatory and law enforcement discussions with three US regulators and the Department of Justice are ongoing. The initial provision of $450m relates to discussions with just one of the three regulators involved.

TD’s AML programme was insufficient to effectively monitor, detect, report, and respond to suspicious activity. Work has been underway to remedy these deficiencies.

In a statement, TD said: “TD is a strong institution with the capital, liquidity, and capacity to fund the critical effort currently underway to strengthen its AML programme, invest in the business, and continue to serve its customers and clients with excellence.”

TD is due to release its second quarter results on 23 May. Analysts have forecast that TD may face fines in the region of $500m-$1bn for the breach.

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

The regulatory issue tops off a challenging year for TD. Its share price is down by 4.7% for the year to date. This time last year, it walked away from the proposed deal to acquire US-based First Horizon Bank. TD aimed to leverage First Horizon’s regional presence to support its growth strategy in the US. That strategy is now on hold pending resolving its regulatory issues and a likely change of CEO.