A Lawsuit Launched Against TD Bank For Anti-Money-Laundering Issues

The alleged lawsuit has been launched against Toronto-Dominion Bank, based on investigations into the financial institution’s anti-money-laundering program in the United States.

The suit filed by Sotos Class Actions is on behalf of shareholders who have invested in and bought TD shares from 26th Aug 2021 to 3rd June 2024, according to sources.

It claims that TD concealed systemic flaws in its anti-money-laundering procedures, which led to a sharp decline in TD’s stock price upon the revelation of the flaws.

According to the notice, the financial institution’s share prices dropped by more than $6 a share, which caused losses for a potential class action for members.

TD has already been hit with hefty penalties, regarding the current U.S. regulatory investigation into its anti-money-laundering compliance program, which it revealed last year.

Heavy Fine Imposed On TD By FinTRAC

The Financial Transaction & Reports Analysis Centre of Canada which is the country’s esteemed financial crimes watchdog imposed the highest monetary penalty of  $ 9.2 million on Toronto-Dominion Bank for regulatory breach. After a detailed compliance examination, it was discovered that the lender had weak anti-money laundering measures.

According to a news release from FinTRAC, five violations of the Proceeds of Crime (Money Laundering) and Terrorist Financing Act, as well as the rules related to them, resulted in the imposition of an administrative monetary penalty on the Bank.

“As mandated for the execution of their duties to review Canadian financial entities, FinTRAC identified five kinds of administrative issues that require quick action,” TD representative Lisa Hodgins responded in an email.

“It is important to note that there has been progress in this area, and there is more progress in the process,” she added.

Also Read: 

• Banks “Have To Get Better” At Combating Money Laundering, Shares OSFI Director
• MAS Fines Swiss-Asia Financial Services S$2.5 Million For Breaking AML Laws

The recent proposed class action was denied by the bank, in a statement it mentioned them as without merit and baseless, says sources. 

According to TD, its disclosures and public pronouncements have always complied with both its requirements of securities law and duties to shareholders.