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TD Bank hit with record $3 billion fine over drug cartel money laundering
- Thread starter Forerunner
- Start date
Wonder what TD banks profits were last year. These stories always seem dope until you see the huge fine was just a slap on the wrist, and its just a way for the govt to make money off illegal shit while the company continues as usual.
But thats just cynical me talking ;P
But thats just cynical me talking ;P
View: https://m.youtube.com/watch?v=INrpmM7Ys6Y
$10 billion CAD net income in 2023
So close to half of their net income? Certainly a big enough hit that it couldn't have been worth it
It really is. The amount of training we need to do for AML even when not directly involved in the front line is significant. I'm really surprised that it went on for this long.
It's always fines. Never prison time. Anyone does this and they're getting hit with RICO charges and serving a life sentence at a Super Max prison. But with these companies, you get a slap on the wrist and a fine that doesn't even amount to a year's profits. These companies see these fines as just necessary business expenses.
This is actually around a quarter of profit for them, or ~6% of annual revenue. Unusually significant.
Immediately thought of this as well lol. Their brand is permanently associated with this in my brain.
Yep, I have to do a training activity every quarter. I have nothing to do with the money, I am nowhere near any that, but I still have to do it.
OP
OP
What does this mean for the future of TD in the US? Will they pull out?
I bank with TD, so I'm worried. I already had to move my money out of Wells Fargo when they decided to close out all overseas account holders after (I think) getting in trouble over money laundering.
I bank with TD, so I'm worried. I already had to move my money out of Wells Fargo when they decided to close out all overseas account holders after (I think) getting in trouble over money laundering.
Most of the major Canadian banks operate in the US (and abroad), but TD in particular was pretty big.
This appears to be TD Bank NA, which is their US subsidiary which was engaged in the money laundering.
That said, the parent bank must have some deficiencies in their process to allow this to go on for this long undetected.
Yeah, if some random off the street was laundering a thousand dollars of cartel money they wouldnt get jail time?
Yep, mostly along the entire East coast.
Your money is FDIC insured up to $250,000. And if TD DID go under (highly doubtful), some other Financial Institution would just take over. You don't have to worry about your money.
HSBC got hit for over a billion fine for money laundering...nothing new. I work in financial compliance..not that uncommon just not at that scale which is a enormous fine.
Because a company is a person silly, you cant send the company to jail...
The people in the company? shhh dont worry about that, the company gives you plausable deniability to get away with murder especially for the top level management. We cant have any real consequences as that would get in the way of the line going up.
I bet they were laundering it through those pneumatic tubes at their drive-up windows.
They expanded into the eastern US about 25 years ago and have grown largely via acquisitions of former local US banks. Here in Boston they acquired what used to be Fleet/Bank of Boston/BayBank which is how they got naming rights on the Boston Garden.
They expanded into the eastern US about 25 years ago and have grown largely via acquisitions of former local US banks. Here in Boston they acquired what used to be Fleet/Bank of Boston/BayBank which is how they got naming rights on the Boston Garden.
Just another reminder that if this were a person, they'd be in jail for a long, long, long, rest of their life kind of time.
Having said that, $3b is a chunk of change.
Having said that, $3b is a chunk of change.
"TD Bank employees collected more than $57,000 worth of gift cards" That seems way too low of a bribe, cmon people. Know your worth.
Yeah, I'm not worried about the money. But the account itself isn't something TD has to let me keep. When WF closed out my account, they gave me a few months to find a new bank or else they were just going to mail me a check for the contents. And after keeping the money, my second priority is having a US domiciled bank account.
TD has huge retail presence in US, specifically NYC.
Interestingly enough I interviewed with them (TD Ameritrade) for a data governance lead position around 2016 - and if I was hired I'd have been responsible for implementing precisely these controls (and more).
Interestingly enough I interviewed with them (TD Ameritrade) for a data governance lead position around 2016 - and if I was hired I'd have been responsible for implementing precisely these controls (and more).
And as always individuals avoid getting in trouble. The bank isn't sentient, it didn't make these decisions and giving the bank a fine isn't a real punishment.
It seems it was just the US subsidiary that was acting illegally. The question is how much did they know about this in Toronto, or did they know at all?
$10.78 Billion. Down from $17 billion the year before.
This is a slap on the wrist.