Home Economy Economic Activity TD Bank to pay $3B in historic money-laundering settlement with the Justice...

TD Bank to pay $3B in historic money-laundering settlement with the Justice Department 

Updated at 3:20 p.m. on Oct. 10.

ATTORNEY GENERAL Merrick Garland speaks during a news conference to announce that TD Bank will pay an approximately $3 billion settlement after authorities say the financial institution's lax practices allowed for significant money laundering, at the Department of Justice, Thursday in Washington. /ASSOCIATED PRESS FILE PHOTO/ MARK SCHIEFELBEIN

WASHINGTON (AP) – TD Bank will pay approximately $3 billion in a historic settlement with U.S. authorities who said Thursday that the financial institution’s lax practices allowed significant money laundering over multiple years.  Toronto-based TD Bank, which has nine branches in Rhode Island and is the state’s eighth largest bank in terms of deposits as of

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WASHINGTON (AP)  TD Bank will pay approximately $3 billion in a historic settlement with U.S. authorities who said Thursday that the financial institution's lax practices allowed significant money laundering over multiple years.  Toronto-based TD Bank, which has nine branches in Rhode Island and is the state’s eighth largest bank in terms of deposits as of June, pleaded guilty to conspiracy to commit money laundering, the largest bank in U.S. history to do so, Attorney General Merrick Garland said.  "TD Bank created an environment that allowed financial crime to flourish," Garland said.  The bank, the 10th largest in the United States, did not immediately respond to a message seeking comment Thursday.  The Justice Department said the bank's failure to prevent money laundering made it "convenient" for criminals. That allowed money-laundering networks to move hundreds of millions of dollars through TD Bank accounts over a period of years, prosecutors said.  Bank employees helped one criminal network launder tens of millions of dollars, said Nicole Argentieri, head of the department's Criminal Division.  In other cases, piles of cash were dumped a bank's counters and ATM withdrawals totaled 40 times to 50 times higher than the daily limits, said Philip Sellinger, U.S. attorney in New Jersey.  The bank's "long-term, pervasive, and systemic deficiencies" in its policies over a period of nine years allowed such abuses to flourish, prosecutors said.  (Correction: An earlier version of this story gave an inaccurate ranking of TD Bank's size in the Rhode Island market. As of June, TD Bank is the eighth largest bank in the state in terms of deposits, according to the Federal Deposit Insurance Corp.)
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