Canada’s TD Bank to plead guilty to US charges it failed to properly monitor money laundering, Reuters sources say

By Nivedita Balu, Chris Prentice and Karen Freifeld

TORONTO/NEW YORK (Reuters) – TD Bank will pay $3 billion in U.S. penalties, plead guilty to criminal charges that it did not do enough to prevent money laundering and accept an asset cap that limits its growth, they have said two sources familiar with the matter. Thursday.

The bank agreed to pay $3 billion in combined penalties, the two sources and a separate source familiar with the matter said. It will be paid to US banking regulators, the Justice Department and the Treasury Department’s Financial Crimes Enforcement Network, the two sources said, confirming details published in the Wall Street Journal on Wednesday.

Those sources said the deal would also include the imposition of an asset cap, a rarely used regulatory tool that deals a major blow to TD as it sought ways to increase its footprint in the United States.

The settlement, expected to be made public later Thursday, will resolve investigations by the Justice Department, the OCC and the Treasury’s Financial Crimes Enforcement Network (FinCEN), with the bank also agreeing to conduct independent monitoring, the sources said. two sources.

TD, Canada’s second-largest bank and the United States’ 10th-largest, first disclosed it was responding to questions from regulators and law enforcement last year, just months after completing its acquisition of $13 billion of US regional lender First Horizon (NYSE: ).

Since then, TD has set aside $3 billion to cover penalties, spent millions to strengthen its compliance programs, laid off dozens of employees at its U.S. branches and named its Canadian personal banking head as its new CEO , distancing the new boss from money laundering. scandal.