“TD Bank created an environment that allowed financial crime to flourish. By making its services convenient for criminals, it became one,” U.S. Attorney-General Merrick Garland said at a news conference in Washington.
Some experts contend that Canada’s regulatory environment has become a haven for international crime.
On Friday, Marc Cohodes, a U.S. investor known for exposing financial misconduct, told The Bureau: "The amount of financial crime going on in Canada right now is far greater than the mind can comprehend. It involves housing, mortgages, and illicit funds flowing in from European, Chinese, and South American networks into Canada's financial systems. The way Canada is welcoming third-world criminals and their funds risks turning it into a third-world enterprise."
Cohodes said he believes Canada’s government has a “dire and urgent need” to address the reputational harm to the nation stemming from the TD case, and other issues, like casino and real estate money laundering in British Columbia, that Cohodes began publicly commenting on in 2015.
TD Bank's guilty plea to conspiring to commit money laundering marks the first time a major U.S. bank has admitted such a charge. As part of the settlement, TD Bank will pay $3 billion in penalties, the largest ever for failing to maintain a compliant anti-money-laundering program. This settlement includes fines directed to the Department of Justice, the Financial Crimes Enforcement Network, and U.S. banking regulators. Additionally, a rare asset cap imposed by the Office of the Comptroller of the Currency restricts TD Bank from expanding in the U.S. without regulatory approval.