TD Bank is reportedly in talks with U.S. prosecutors regarding a potential plea deal linked to its shortcomings in anti-money laundering (AML) measures. This comes after allegations that the bank's American division failed to adequately prevent money laundering activities, particularly concerning a criminal Chinese operation that funneled hundreds of millions of dollars through its branches in New York and New Jersey. The U.S. Justice Department's investigation has highlighted the bank's alleged recklessness in establishing proper AML protocols. In response to the ongoing scrutiny, TD has set aside $2.6 billion in provisions related to this investigation, following a previous $450 million provision. The bank has also initiated a "remediation" of its AML program, which included the termination of over a dozen employees. Amid these challenges, CEO Bharat Masrani announced his upcoming retirement, taking responsibility for the issues faced during his tenure.
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