GetBlock Magazine - What happened? The Financial Crimes Enforcement Network (FinCEN) of the US Treasury Department has fined TD Bank $1.3 billion for violating anti-money laundering (AML) regulations. TD Bank is one of the largest banks in Canada, and also serves more than 10 million customers in the United States. Following an analysis of the transactions, FinCEN said that TD Bank did not report suspicious transactions related to crypto firms.

FinCEN Statement

What else is known? Officials say the bank processed high-risk transactions for an unidentified organization. Representatives of the organization made wire transfers of more than $100 million per month. The funds were used to trade cryptocurrency with companies from various industries in Colombia, China, and the Middle East.

From July 2023 to April 2024, the firm's transaction volume at TD Bank exceeded $1 billion. However, when the account opened, it was positioned as a real estate firm with annual transaction volume of less than $1 million.

90% of the funds to the company's account came from an unnamed crypto exchange registered in the UK. 60% of the outgoing transactions went to a financial institution in Colombia that also deals with cryptocurrencies. In particular, a one-time transfer of $420 million was recorded to this unnamed Colombian institution.

FinCEN claims that a group of TD Bank clients is also linked to an international crypto exchange and received more than $650 million from it.

The bank itself did not check clients working with cryptocurrency according to internal regulations when processing transactions and did not report the transactions to regulators until it began receiving inquiries about the activities of an unnamed company.

TD Bank admitted to violating AML laws, and out of the $3 billion fine, $1.3 billion was transferred to FinCEN, another $1.89 billion will be sent to the Justice Department, $123.5 million to the Federal Reserve, and $450 million to the Office of the Comptroller of the Currency (OCC).

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