On October 10, 2024, the OCC announced a cease and desist order and a $450 million civil money penalty against TD Bank, N.A. and TD Bank USA, N.A., for deficiencies in the bank’s BSA and AML compliance program. The OCC determined that the bank failed to develop and maintain a BSA/AML program reasonably designed to assure and monitor compliance with the BSA and its implementing regulations.
In particular, the OCC found that TB Bank:
Failed to develop and provide for the continued administration of a BSA/AML Program including deficiencies related to internal controls and risk management practices; risk assessments; customer due diligence; customer risk ratings; suspicious activity identification, evaluation, and reporting; governance; staffing; independent testing; and training, among others;
Had significant, long-standing, systemic breakdowns in its transaction monitoring program;
Since at least 2020, processed hundreds of millions of dollars worth of transactions with clear indicia of highly suspicious activity, creating a potential for significant money laundering, terrorist financing, or other illicit financial transactions, and repeatedly failed to take appropriate and timely corrective action to address the highly suspicious activity;
Had a systemic breakdown in its policies, procedures, and processes to identify and report suspicious activity, and a pattern or practice of noncompliance with the SAR filing requirement;
Violated the currency transaction reporting requirements on numerous occasions;
Failed to implement appropriate risk-based procedures for conducting ongoing customer due diligence; and
Recklessly engaged in unsafe or unsound practices related to the Bank’s BSA/AML Program.
According to the consent order, TD Bank has begun corrective action and has committed to taking all necessary and appropriate steps to remedy the deficiencies identified by the OCC.
Read the OCC’s press release here.
The consent orders can be found at: