TD Bank Fined $3.1B for AML Violations Amid Failure to Monitor Suspicious Crypto Transactions
The post TD Bank Fined $3.1B for AML Violations Amid Failure to Monitor Suspicious Crypto Transactions appeared on BitcoinEthereumNews.com.
TD Bank, a major American financial institution, has been slapped with a substantial fine of $3.1 billion for violations of the Bank Secrecy Act (BSA) and anti-money laundering (AML) regulations in the United States. According to The Block, these violations stem from the bank’s failure to adequately monitor and report over 2,000 suspicious transactions involving virtual assets. The penalties include $1.8 billion directed to the Department of Justice (DOJ) and $1.3 billion to the Financial Crimes Enforcement Network (FinCEN). Additionally, TD Bank will be subjected to a four-year monitorship to ensure compliance with regulatory standards. Background: Understanding AML Regulations and TD Bank’s Role The Bank Secrecy Act (BSA), enacted in 1970, mandates financial institutions to assist government agencies in detecting and preventing money laundering. Anti-money laundering (AML) regulations extend these requirements, compelling banks to implement measures that identify and report suspicious activities that may involve illicit funds. As one of the largest banks in the United States, TD Bank holds a significant responsibility in adhering to these regulations. The institution offers a wide range of financial services, including personal banking, commercial banking, and investment services, making its compliance efforts critical to maintaining the integrity of the financial system. Details of the Violations: Failure to Monitor Suspicious Transactions During a recent parliamentary audit, FinCEN accused TD Bank of failing to monitor and report over 2,000 suspicious transactions conducted by a specific customer group. This group had initially presented itself as being involved in sales finance and real estate but was, in reality, engaged in large-scale international crypto transactions. Key Aspects of the Violations: Misrepresentation of Business Activities: The customer group falsely represented its business operations, disguising its true intent to conduct significant cryptocurrency transactions. Exceeding Promised Transaction Limits: Despite assurances not to exceed $1 million in annual sales, the group managed…
Filed under: News - @ October 15, 2024 7:21 am