Toronto-Dominion Bank will pay about $3 billion in penalties and face restrictions on its U.S. growth in a settlement with regulators over its failure to catch money laundering, the Wall Street Journal reported.
Regulators are likely to announce a settlement with the Canadian bank on Thursday, although that timing may change, a person familiar with the matter told Bloomberg, asking not to be named discussing confidential information. The bank said it plans to hold a conference call and will confirm the time later.
The Office of the Comptroller of the Currency is expected to impose a cap on TD Bank's U.S. retail banking assets as part of the agreement, the Journal said, citing people familiar with the matter.
The size of the financial penalty doesn't come as a surprise because TD Bank has already set aside
Canada's second-largest bank has faced an array of legal challenges south of the border, including probes by the OCC, the Department of Justice and the Federal Reserve into alleged
The investigations have had a wide-ranging impact on the bank, including marring the end of Chief Executive Bharat Masrani's decade-long tenure. He took responsibility for the anti-money-laundering challenges when TD Bank announced his retirement last month.
TD Bank was also
Spokespeople for the bank and the OCC weren't immediately available for comment Wednesday, while a representative for the Federal Reserve declined to comment.
The Canadian bank has more than 10 million U.S. customers and almost 1,200 branches concentrated along the East Coast, and its American retail operations account for about a quarter of its revenue. But there have been persistent questions about whether it will be able to continue to expand that business.
TD Bank recently reached a deal with U.S. prosecutors and regulators to pay more than $20 million to resolve a Treasuries spoofing case and, separately, agreed to
