Canada’s TD Bank Faces C$10M Penalty Over Unsatisfactory AML Measures

January 29, 2024

Financial Transactions and Report Analysis Centre of Canada declares that TD Bank Canada needs to improve its Anti-money laundering (AML) measures.

TD Bank, Canada’s second-biggest lender, is under scrutiny by the financial crimes watchdog, as the investigation exposed alleged shortcomings in AML controls.

The expected fine may exceed C$10 million ($7.44 million), making it potentially the largest penalty ever imposed by Canada’s AML agency on a Canadian financial institution, as the Globe and Mail newspaper reported.

FINTRAC, gearing up to impose the penalty, concluded the assessment of the lender in late 2023, and stated that the lender’s compliance with AML regulations is unsatisfactory.

On Friday, in a statement, FinTRAC reportedly mentioned that it can’t disclose details about compliance related to a specific business. With the new national security powers granted by the federal government, the agency has intensified its monitoring efforts.

The bank reportedly said, it has improved its AML program and appointed new executives and advisors to superhead these efforts.

Expressing its dedication to improvement, TD Bank reportedly stated,

“On an ongoing basis, TD is actively engaged with law enforcement and our regulators, including FINTRAC, to combat criminal activity.”

Previous Penalties Imposed by FinTRAC

In the previous month, FINTRAC fined the Royal Bank of Canada approximately $7.5 for non-compliance with Aanti-money laundering & counter-terrorist financing regulations. The penalty was the biggest-ever penalty imposed by the agency, however, the recent fine seems identical, exceeding the previous record amount.

FINTRAC has enforced more than 125 penalties across multiple sectors, exercising the authority granted over the past 15 years. In the financial year 2022-2023, FINTRAC released six notices of non-compliance to businesses, totaling $1,113,569 in fines.

Also read: FINTRAC Imposes App. $7.5 Million Penalty on Royal Bank of Canada for AML Compliance Breaches