TD expects penalties from US probes on money laundering

Credit: REUTERS/Chris Wattie

TORONTO, Aug 24 (Reuters) - TD Bank Group TD.TO on Thursday said it expects fines and "non-monetary" penalties related to investigations by U.S. authorities over its anti-money laundering compliance program.

TD, Canada's No. 2 lender, made the disclosure as part of its quarterly earnings, in which it said it has been cooperating with U.S. authorities, including in connection with an investigation by the U.S. Department of Justice.

"The bank is cooperating with such authorities and is pursuing efforts to enhance its Bank Secrecy Act/anti-money laundering compliance program," TD said in the filing.

"While the ultimate outcomes of these inquiries and investigations are unknown at this time, the Bank anticipates monetary and/or non-monetary penalties to be imposed."

The U.S. DOJ did not immediately respond to a request for comment.

Earlier this year, TD scrapped its planned $13.4 billion acquisition of U.S. regional lender First Horizon.

In June, TD CEO Bharat Masrani told shareholders the bank would resolve issues with regulators that led to the collapse of the acquisition.

Masrani on Thursday declined to comment on an analyst's question on the postearnings conference callon a provision for possible fines.

"What I can say ... we are pursuing efforts to enhance our U.S. AML compliance program," he told analysts.

(Reporting by Denny Thomas and Nivedita Balu in Toronto, editing by Deepa Babington)

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


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