TD Bank has been hit with over $9 million in fines for multiple violations involving non-compliance and money laundering.
The Financial Transactions and Reports Analysis Centre of Canada (FINTRAC) administered the penalty for five infractions found during a review between March 1, 2022 and March 31, 2023, CP24 reported.
TD was ordered to pay just shy of $9.2 million for the following transgressions:
- Failure to submit suspicious transaction reports where there were reasonable grounds to suspect that transactions were related to money laundering or terrorist activity.
- Failure to assess and document money laundering.
- Failure to take the prescribed special measures for high risk.
- Failure to conduct ongoing monitoring of business relationships.
- Failure to keep record of the measures taken and information obtained when conducting ongoing monitoring of business relationships.
According to CP24, FINTRAC found, “96 clients who were not entered into the TD’s high-risk client program, including a politically exposed foreign person who was able to transact for more than two years without the bank obtaining required details from the client.”
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FINTRAC says it is committed to helping financial institutions comply with their obligations, and to coming down firmly on those who do not fall in line.
“Canada’s Anti-Money Laundering and Anti-Terrorist Financing Regime is in place to protect the safety of Canadians and the security of Canada’s economy…we will also be firm in ensuring that businesses continue to do their part and we will take appropriate actions when they are needed,” Sarah Paquet, director and chief executive office of the Financial Transactions and Reports Analysis Centre of Canada, said in a news release on Thursday.
TD’s fine follows a $7.5-million fine against RBC and a $1.3-million fine against CIBC. Both were administered in December over non-compliance offences.
TD paid the fines in full and proceedings have ended, FINTRAC confirmed.
