TD Bank’s alleged ties to money laundering [Video]

TORONTO –

TD Bank Group could be hit with more severe penalties than previously expected, says a banking analyst, after a report that the investigation it faces in the U.S. is tied to laundering illicit fentanyl profits.

National Bank analyst Gabriel Dechaine said in a note that the worst-case scenario of the multiple U.S. investigations TD faces needs reassessing after the Wall Street Journal reported the link on Thursday.

The newspaper said the U.S. Justice Department investigation is focused on how Chinese drug traffickers allegedly used TD to launder at least US$653 million, and bribed TD employees to do so.

TD did not directly confirm the report, but said its anti-money laundering defences had been deficient.

“Criminals relentlessly target financial institutions to launder money and TD has a responsibility and an obligation to thwart their illegal activity,” said chief executive Bharat Masrani in a late Friday statement. 

“I regret that there were …