TD Bank, a major Canadian financial institution potentially among Shopify’s banking partners, faces a massive scandal. In early 2024, public reports revealed that TD Bank is under U.S. federal investigation, including by the Department of Justice, for its alleged role in laundering hundreds of millions of dollars in illicit fentanyl profits and other drug money through its U.S. branches. Chinese crime groups and drug traffickers reportedly used TD to launder money from U.S. fentanyl sales. As a consequence, TD Bank pleaded guilty to conspiracy to commit money laundering and agreed to pay approximately $3 billion in a settlement. This situation stemmed from “chronic failures” in its anti-money laundering (AML) program, which allowed criminal enterprises to flourish. The Financial Crimes Enforcement Network (FinCEN) assessed a record $1.3 billion penalty against TD Bank for these Bank Secrecy Act violations.
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