Toronto-Dominion Bank T.TD

RE:RE:Canadian banks are solid

[HoneyBadger77]

It would seem so yes FiddyFiddyShot.  And note (at the end) that RBC and CIBC were also whacked for $9 million CAD in 2023 for what seems to be a similar situation yet I don't recall investor panick mode like we're seeing with TD.  Interesting how CAD regulators impose a fine of $9 million CAD while US regulators penalties could be around $453 million US.

And from what I can determine, today's whack down of TD shares seems to be the direct result of the National Bank analyst (yes one analyst and a TD competitor no less) that commented that the US Regulator penalties could be higher and there COULD be longer term impacts to TD future business.  No proof or facts how he came to this conclusion but the market takes a shoot first ask question later approach.  Makes sense to me. 

HB77

REUTERS

UPDATE 2-Canada's anti-money laundering agency imposes $6.7 mln fine on TD Bank

 

05/02/2024 12:43:34 PM

 

(Adds more details and background in paragraphs 2, 7-11)

May 2 (Reuters) - Canada's anti-money laundering agency said on Thursday it had imposed its biggest-ever penalty of nearly C$9.2 million ($6.71 million) on TD Bank over non-compliance of anti-money laundering (AML) regulations.

The bank has been grappling with regulatory probes over its AML compliance program both at home and in the United States, which have been a drag on the stock's performance.

The Financial Transactions and Reports Analysis Centre of Canada (FINTRAC) said the administrative monetary penalty on TD Bank was imposed on April 9 following a compliance examination in 2023.

FINTRAC said it found that TD Bank had failed to submit suspicious transaction reports as well as assess and document money laundering and terrorist activity financing risks.

"As part of their regular review of Canadian financial entities, FINTRAC identified five specific administrative findings that require our attention. Improvements have been made and more are underway," TD Bank spokesperson Lisa Hodgins said in an emailed statement to Reuters.

The penalty comes days after Canada's second-biggest bank set aside $450 million in relation to ongoing discussions with a U.S. regulator over its AML compliance program.

Last month, TD Chief Executive Officer Bharat Masrani acknowledged that its AML compliance program was not up to the mark and the bank was working on addressing it.

FINTRAC also said on Thursday TD Bank had failed to conduct ongoing monitoring of business relationships as well as take the prescribed special measures for high risk.

The administrative monetary penalty has been paid in full by TD Bank and the proceedings have ended, the agency said.

The anti-money laundering agency has stepped up monitoring after the federal government added new powers relating to national security.

Last year, it fined two of the country's big banks — Royal Bank of Canada and CIBC — for a total of C$9 million over violations that included failure to submit suspicious transactions. ($1 = 1.3709 Canadian dollars) (Reporting by Arasu Kannagi Basil in Bengaluru; Editing by Shilpi Majumdar)

_______________________________________________________________________________

REUTERS

BUZZ-TD Bank hits over 3-year low after report on probe tied to laundering of illicit fentanyl profits

 

05/03/2024 2:42:30 PM

 

(Updates)

** Canada's second-largest lender TD Bank's shares fall 6.4% to C$74.37

** Stock at its lowest level since Feb. 3, 2021

** A U.S. DoJ investigation into TD Bank is focused on how Chinese drug traffickers and crime groups used the lender to launder their money from fentanyl sales, WSJ reported on Thursday

** National Bank of Canada analyst Gabriel Dechaine says the issues may result in a much larger fine than initially contemplated and could as well have longer-term implications for TD's financial performance

** The bank disclosed last year it was cooperating with authorities in an investigation into its anti-money laundering compliance program by the DoJ

** Earlier this week, TD Bank said it had taken an initial provision of $450 mln in relation to ongoing discussions with a U.S. regulator over an anti-money laundering probe and any penalties it might be slapped with

** As of last close, company's shares down 7.2% YTD (Reporting by Arasu Kannagi Basil in Bengaluru)