Bulletin: Toronto-Dominion Bank?s US$2.6 Billion Provision Highlights The Severity Of Its Anti-Money Laundering Compliance Issues

TORONTO (S&P Global Ratings) Aug. 26, 2024--S&P Global Ratings today said that Toronto-Dominion (TD) Bank's Aug. 21, 2024, announcement of another provision related to the bank's anti-money laundering (AML) program highlights the severity of compliance issues. The US$2.6 billion provision is related to ongoing investigations by its U.S. prudential regulators, the Financial Crimes Enforcement Network (FinCEN), and the U.S. Department of Justice, with respect to deficiencies associated with TD Bank's AML program. This provision follows a US$450 million provision announced in April 2024. The bank also indicated that it is actively pursuing a global resolution of these civil and criminal investigations and expects to finalize this by the end of calendar year. TD Bank also sold some of its stake

...August 26, 2024 TORONTO (S&P Global Ratings) Aug. 26, 2024--S&P Global Ratings today said that Toronto-Dominion (TD) Bank's Aug. 21, 2024, announcement of another provision related to the bank's anti-money laundering (AML) program highlights the severity of compliance issues. The US$2.6 billion provision is related to ongoing investigations by its U.S. prudential regulators, the Financial Crimes Enforcement Network (FinCEN), and the U.S. Department of Justice, with respect to deficiencies associated with TD Bank's AML program. This provision follows a US$450 million provision announced in April 2024. The bank also indicated that it is actively pursuing a global resolution of these civil and criminal investigations and expects to finalize this by the end of calendar year. TD Bank also sold some of its stake in Charles Schwab Corp., which we believe was done to fund the latest provision, lowering its ownership stake in the bank to a 10.1% interest down from 12.3%. As a consequence of these...

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