TD Bank, Canada's second-largest bank, is expected to pay approximately $3 billion in fines and face growth restrictions on its U.S. operations as part of a settlement with American regulators and prosecutors. The bank has been accused of failing to adequately monitor money laundering activities related to drug cartels.
As part of the agreement, the Office of the Comptroller of the Currency, TD Bank's primary regulator in the U.S., is anticipated to impose an asset cap to limit the bank's growth within the country. This restriction is intended to prevent expansion beyond a certain level.
In August, TD Bank announced that it had set aside $3 billion to address anti-money laundering issues and potential fines from U.S. regulators, paving the way for the new CEO set to take over next year.
