The Bureau;
In a historic crackdown on criminality that reached into the upper echelons of Canadian banking operations in the United States, the U.S. Department of Justice has unveiled a case against TD Bank spanning nearly a decade. Officials revealed that the bank allowed approximately $18.3 trillion to flow through its systems unchecked between January 2014 and October 2023, facilitating money laundering activities for Colombian drug traffickers and three major money laundering networks, including a Chinese crime group operating in New Jersey.
These networks collectively laundered over $670 million through TD Bank’s accounts.
During this period, TD Bank failed to monitor 92 percent of its transaction volume, resulting in over 14.6 billion unmonitored transactions, encompassing a range of high-risk activities. The case has delivered a serious blow to TD Bank’s U.S. expansion efforts and raises critical questions about regulatory oversight in Canada, where some experts argue that gaps in enforcement allowed such lapses to persist.
“TD Bank created an environment that allowed financial crime to flourish. By making its services convenient for criminals, it became one,” U.S. Attorney-General Merrick Garland said at a news conference in Washington.
Some experts contend that Canada’s regulatory environment has become a haven for international crime.
On Friday, Marc Cohodes, a U.S. investor known for exposing financial misconduct, told The Bureau: “The amount of financial crime going on in Canada right now is far greater than the mind can comprehend. It involves housing, mortgages, and illicit funds flowing in from European, Chinese, and South American networks into Canada’s financial systems. The way Canada is welcoming third-world criminals and their funds risks turning it into a third-world enterprise.”
Cohodes said he believes Canada’s government has a “dire and urgent need” to address the reputational harm to the nation stemming from the TD case, and other issues, like casino and real estate money laundering in British Columbia, that Cohodes began publicly commenting on in 2015.