TD Bank has been hit with a record-breaking $3 billion fine following allegations of facilitating money laundering activities linked to drug cartels.

The U.S. Department of Justice announced that the Canadian-based financial institution’s U.S. operations failed to properly monitor suspicious transactions, in violation of the Bank Secrecy Act, which requires banks to track large cash deposits and report questionable activities.

Between 2018 and 2024, TD Bank reportedly allowed over $670 million to be funneled through its accounts by criminal organizations.

Investigations revealed that some employees were bribed with more than $57,000 worth of gift cards to process cash deposits without reporting the illicit transactions.

The total fine includes $1.8 billion payable to the Department of Justice and an additional $1.3 billion to the U.S. Treasury’s Financial Crimes Enforcement Network (FinCEN), making this the largest financial penalty of its kind in U.S. banking history​.

TD Bank has acknowledged its failures in complying with anti-money laundering protocols. In response, CEO Bharat Masrani expressed regret over the bank’s shortcomings and pledged to overhaul its compliance systems. The bank will implement stricter oversight measures and boost its anti-money laundering (AML) teams to ensure future adherence to U.S. regulations.

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