TD Bank accepts $3B fine over money laundering
The US retail bank pleaded guilty to multiple criminal charges


What happened
TD Bank pleaded guilty to multiple criminal charges Thursday and agreed to pay the Justice Department and financial regulators more than $3 billion for facilitating hundreds of millions of dollars in money laundering by drug smugglers, terrorists, human traffickers and other criminal organizations. Along with the record financial penalties, Canada's No. 2 bank is prohibited from growing beyond its current size in the U.S. TD Bank is the 10th-largest U.S. retail bank, with more than 1,100 branches along the East Coast.
Who said what
The "flagrant" money laundering was "somewhat of an open secret" at TD Bank, The New York Times said, with managers making jokes about the activity and at least two employees taking bribes to enable it. "You guys really need to shut this down LOL," one bank manager emailed a colleague, fruitlessly, according to charging documents. "TD Bank created an environment that allowed financial crime to flourish," said Attorney General Merrick Garland. "By making its services convenient for criminals, it became one." TD Bank's outgoing CEO, Bharat Masrani, said the bank took "full responsibility" for the "failures" of its anti-money laundering program, and was working to fix them. "This is a sad day in our history, for which we are very regretful," he said.
What next?
The Justice Department will get the "biggest slice of the penalties, some $1.8 billion," while the Treasury's Financial Crimes Enforcement Network nets $1.3 billion, The Wall Street Journal said. Both agencies ordered independent monitors to "watch the bank closely and ensure compliance" with its commitments.
Subscribe to The Week
Escape your echo chamber. Get the facts behind the news, plus analysis from multiple perspectives.

Sign up for The Week's Free Newsletters
From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.
From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.
A free daily email with the biggest news stories of the day – and the best features from TheWeek.com
Peter has worked as a news and culture writer and editor at The Week since the site's launch in 2008. He covers politics, world affairs, religion and cultural currents. His journalism career began as a copy editor at a financial newswire and has included editorial positions at The New York Times Magazine, Facts on File, and Oregon State University.
-
One great cookbook: 'The Cook You Want to Be'
The Week Recommends And the way you want to eat — now
-
'We should all ask ourselves: When we laugh, who's hurting?'
Instant Opinion Opinion, comment and editorials of the day
-
IDF blames 'error' for strike on Gaza water line
Speed Read Israeli forces attack Palestinians, including children, collecting water in central Gaza
-
The FTC is pushing back against false 'Made in USA' claims
The Explainer The agency has dubbed July 2025 "Made in the USA" month
-
Higher toy prices from Trump's tariffs have arrived
In the Spotlight Three out of four toy products in the US come from China
-
'Wrench attacks' are targeting wealthy crypto moguls
The Explainer The attacks are named for physical coercion that can be used to gain crypto passwords
-
Trump is trying to jump-start US manufacturing. Is it worth it?
Today's Big Question The jobs are good. The workers may not be there.
-
Starbucks baristas strike over dress code
speed read The new uniform 'puts the burden on baristas' to buy new clothes, said a Starbucks Workers United union delegate
-
The end of WeightWatchers?
Talking Point The diet brand has filed for bankruptcy in the US as it struggles to survive in era of weight-loss jabs
-
Visa wants to let AI make credit card purchases for you
The Explainer The program will allow you to set a budget and let AI learn from your shopping preferences
-
A newly created gasoline giant in the Americas could change the industry landscape
The Explainer Sunoco and Parkland are two of the biggest fuel suppliers in the US and Canada, respectively