(Reuters) – Canada’s TD Bank is expected to pay about $3 billion in fines as part of a settlement with U.S. regulators and prosecutors over allegations that it failed to properly monitor money laundering by drug cartels, it was reported the Wall Street Journal.
The bank’s U.S. unit is expected to plead guilty to the charges on Thursday, the report said on Wednesday.
TD Bank did not immediately respond to a Reuters request for comment.
As part of the deal, the top U.S. banking regulator, the Office of the Comptroller of the currency (OCC), is also expected to impose an asset limit that will prevent the Canadian lender from growing above a certain level in the country, reported the newspaper. with reference to people familiar with the matter.
Both the U.S. Department of Justice (DOJ) and the Treasury Department’s Financial Crimes Enforcement Network (FinCEN) plan to set up independent regulators to keep a close eye on the lender and ensure compliance with the pacts, the report said.
The FinCEN monitor is expected to remain active for four years, the WSJ reported, citing a person familiar with the matter.
The settlement will involve the DOJ, FinCEN, OCC and the Federal Reserve, under which the Justice Department will collect the bulk of the fines, amounting to approximately $1.8 billion, while FinCEN will collect $1.3 billion receives, the report said.
Spokespeople for the DOJ, OCC and FinCEN did not immediately respond to Reuters requests for comment.
(Reporting by Pretish MJ in Bengaluru; Editing by Subhranshu Sahu)
