According to a report from the Financial Crimes Enforcement Network (FinCEN) on Oct. 10th, TD Bank’s U.S. wing agreed to pay over $3 billion in penalties.
The fine was for failing to properly monitor money laundering activities. The bank has also accepted limits on its future growth in the U.S. FinCEN found that TD Bank facilitated over $1 billion in transfers linked to two crypto exchanges — one based in the United Kingdom and the other in Colombia.
TD Bank fined $3B for Crypto Exchange Links in UK & Colombia
These transactions were conducted through a mysterious customer, referred to as “Customer Group C,” who claimed to work in finance and real estate. However, most of the money handled by this group was tied to high-risk crypto trading.
The report revealed that 90% of the incoming funds for Customer Group C came from the UK crypto exchange, and 60% of the outgoing transfers were wired to a Colombian financial institution offering virtual asset services.
FinCEN also noted that Customer Group C averaged over $100 million in monthly wire transfers, many of which were routed through risky regions like Colombia, China, and parts of the Middle East. These areas are often flagged for potential money laundering activities, which made TD Bank’s lack of oversight even more concerning.
Source: https://www.altcoinbuzz.io/cryptocurrency-news/td-bank-fined-for-crypto-ties-with-uk-and-colombia/