TD Bank slapped with $9.2 million fine for failing to report suspicious transactions

The Financial Transactions and Reports Analysis Centre of Canada (FINTRAC) has imposed a multimillion-dollar administrative fine on Toronto-Dominian Bank, also known as TD Bank.

The intelligence agency supervises money laundering and terrorist financing in the country and aims to protect Canadians’ personal financial information.

On Thursday morning, FINTRAC published a statement sharing that TD was hit with the $9,185,000 penalty on April 9 for failing to comply with Canada’s Proceeds of Crime (Money Laundering) and Terrorist Financing Act and its associated regulations.

Under the aforementioned Act, FINTRAC requires casinos, financial entities, money services businesses, real estate brokers and sales representatives, and several other Canadian business sectors to keep certain records, identify clients, maintain compliance, and report certain financial transactions.

Officials outlined all the administrative violations TD Bank was found to have committed. They are as follows:

  • Failure to submit suspicious transaction reports where there were reasonable grounds to suspect that transactions were related to a money laundering or terrorist activity financing offence;
  • Failure to assess and document money laundering/terrorist activity financing risks;
  • Failure to take the prescribed special measures for high risk;
  • Failure to conduct ongoing monitoring of business relationships; and
  • Failure to keep a record of the measures taken and information obtained when conducting ongoing monitoring of business relationships.

FINTRAC clarified that this penalty was “not for criminal offences for money laundering or terrorist activity financing” and has been paid in full. There are no more proceedings in the case.

“FINTRAC will continue to work with businesses to help them understand and comply with their obligations under the Act,” said Sarah Paquet, the agency’s director and CEO.

“We will also be firm in ensuring that businesses continue to do their part, and we will take appropriate actions when they are needed.”

In the 2023–24 year, FINTRAC issued 12 Notices of Violation of non-compliance to businesses for over $26 million. Since it attained the legal authority to do so, it has imposed more than 140 penalties across business sectors.