Bank Drops Billion to Fix Cartel Cash Blunder

TD Bank is shelling out a massive $3 billion fine for letting drug cartels slip through their money laundering checks. This isn't just a slap on the wrist—it's a record-breaking penalty meant to shake things up at the bank. For years, TD Bank's system missed over 90% of suspicious transactions, allowing cartels to move hundreds of millions of dollars through their accounts. The US government didn't like that one bit, and neither did Attorney General Merrick Garland, who pointed out that the bank's failures didn't just create potential issues, but actual harm to communities. TD Bank's CEO, Bharat Masrani, admits the buck stops with him and has promised to make changes. The bank is hiring hundreds of new specialists to beef up their anti-money laundering team and improve their processes. They'll also be under close watch by the Financial Crimes Enforcement Network (FinCEN) for the next four years to make sure they stick to their promises. Plus, the US Federal Reserve is forcing TD to move its anti-money laundering compliance office to the United States. The bank is also facing growth restrictions in the US, which isn't unprecedented. Wells Fargo, for instance, had similar restrictions placed on them after a fake accounts scandal. TD Bank's shares dropped by 6% after the news broke, as investors worry about higher legal costs and slower growth. The issue of drug cartels using US banks to launder money isn't new. Officials have been trying to crack down on this by working with banks and social media companies to spot laundering activities. Some critics argue that the penalties against TD Bank aren't tough enough, hoping for better enforcement of anti-money laundering laws.