TD Bank has been hit with over $3 billion in penalties for serious compliance failures related to the Bank Secrecy Act and anti-money laundering regulations.
The penalties include financial penalties, an asset cap, restrictions on growth, limitations on opening new branches, constraints on dividend payments, and a requirement for a third-party assessment of its compliance program.
The bank is also prohibited from rehiring employees involved in the illegal activities. However, there are concerns about the lack of charges against individual bank executives and supervisors, as this undermines the deterrent effect of the penalties. Advocates argue that personal accountability is necessary to prevent future misconduct in the banking sector.
The actions against TD Bank highlight the need for stronger enforcement of laws to protect the integrity of the financial system. The focus on individual accountability may become more prominent in future enforcement actions.