Trudeau ‘concerned’ about TD Bank’s actions in U.S. money laundering case

Prime Minister Justin Trudeau says the national authorities is “concerned” astir the actions of TD Bank’s U.S. subsidiaries that led to a historical US$3-billion plea woody to settee money laundering charges this month.

Trudeau made the comments during question play successful the House of Commons Wednesday erstwhile asked by NDP MP Don Davies what the Liberals person done to “address repeated transgression actions of TD Bank.”

“We’re of people precise acrophobic by the actions of TD Bank successful the United States,” the premier curate responded.

“We marque definite each azygous time that banks successful Canada behave by pursuing each the rules. We person continued to fortify fiscal oversight and we are making definite determination is afloat accountability for those liable for this wrongdoing successful the United States.”

The remark look to beryllium the archetypal nationalist acknowledgement by Trudeau oregon immoderate curate of the case, which saw TD plead blameworthy to violating a U.S. law aimed astatine preventing wealth laundering — the largest slope ever to bash so.

At the clip the colony was announced, Canada’s superintendent of fiscal institutions Peter Routledge said successful a connection the accusation disclosed successful the lawsuit was “serious” but could not remark connected the affairs of immoderate Canadian federally regulated fiscal institution.

The U.S. authorities had accused TD of ignoring aggregate reddish flags from high-risk customers and creating a “convenient” situation for atrocious actors to exploit. TD failed to show implicit US$18 trillion successful lawsuit enactment for astir a decade, enabling 3 wealth laundering networks to transportation illicit funds done accounts astatine the bank, U.S. authorities said.

In summation to the much than US$3-billion fine, the plea woody included a uncommon plus headdress connected TD’s U.S. concern interests, which is typically reserved for terrible cases. The punishment dealt a large stroke to TD, which is the 10th largest slope successful the U.S. and was readying to grow further.

Some U.S. politicians said the penalties didn’t spell acold enough, including U.S. Senator Elizabeth Warren, who said it “lets atrocious slope executives disconnected the hook for allowing TD Bank to beryllium utilized arsenic a transgression slush fund.”

The plea woody has besides sparked scrutiny implicit Canada’s comparatively humble penalties for akin activity.

In Canada, Fintrac tin level a maximum good of $500,000 for each precise superior reporting violation, oregon it tin notation violations to imaginable transgression prosecution.

In contrast, the monolithic American good came successful portion from U.S. rules that let regulators to good banks up to US$500,000 for each time they deficiency a functioning anti-money laundering program.

The constricted fines disposable to Fintrac means the $9.2 cardinal punishment it imposed connected TD earlier this twelvemonth was the largest it had ever issued.

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Fintrac said successful a connection that on with its grounds punishment against TD, it besides required the slope to make an enactment program to code its deficiencies, and the regulator whitethorn levy further penalties if the slope doesn’t travel done with its plan.

TD has said it is making the investments, changes and enhancements required to present connected commitments regarding its anti-money laundering program. Incoming CEO Ray Chun told investors connected a league telephone connected the time the U.S. plea woody was announced that TD “will marque the indispensable changes to enactment the slope connected a stronger foundation” and “meet our commitments to our regulators.”

The national authorities undertook nationalist consultations past twelvemonth connected ways to amended and fortify Canada’s anti-money laundering regime, and boosted regulatory requirements for casinos and different non-bank entities earlier this year.

The concern section told the Canadian Press successful a connection that the authorities has zero tolerance for fiscal crimes, and is continuously moving to amended Canada’s quality to combat fiscal crime.

A spokesperson said the authorities has introduced a important fig of measures to fortify Canada’s wealth laundering oversight, including expanding information-sharing, and since 2019 has invested adjacent to $379 cardinal to combat fiscal crimes.

Global News has reached retired to Finance Minister Chrystia Freeland’s bureau for further remark pursuing Trudeau’s remarks.

Routledge, speaking astatine a hazard league earlier successful October, acknowledged wealth laundering was “a hazard that is much important than I appreciated 3 years agone erstwhile I started the job” and that mounting incidents had forced his bureau to survey the substance much closely.

— with files from the Canadian Press