By Nivedita Balu
TORONTO (Reuters) – A former employee of Florida-based TD Bank has been arrested and charged with facilitating money laundering to Colombia, New Jersey’s attorney general said on Wednesday, in the first such arrest since the Canadian lender paid a $3 billion fine.
The US arm of TD Bank pleaded guilty in October to conspiracy to commit money laundering, becoming the first bank in the US to do so. It is also the largest bank to plead guilty to the failure of the U.S. Bank Secrecy Act program.
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Regulators imposed heavy fines, imposed asset caps and required government-ordered monitors to be installed, partly because of deficiencies in TD’s compliance system, which allowed up to $670 million to be laundered from narcotics sales.
Dozens of people have been arrested or charged in the US in recent years in connection with money laundering involving TD.
In the latest case, Leonardo Ayala, 24, who worked at a TD Bank branch in Doral, Florida, between February and November 2023, is accused of aiding a money laundering network by issuing dozens of debit cards for accounts opened in the names of shell companies. in exchange for bribes, court documents show.
Those accounts were used to launder proceeds from narcotics trafficking through ATM withdrawals in Colombia, according to a statement from the New Jersey attorney general.
“The investigation revealed that millions of dollars were laundered into Colombia through accounts controlled by Ayala,” the statement said.
Ayala could not immediately be reached for comment.
“We identified the activity, reported it and worked closely with authorities in their investigation. We continue to actively support their efforts,” a TD spokesperson said.
In October, U.S. officials said TD Bank employees received at least $57,000 in gift cards in 2020 and 2021 from a criminal who handled more than $400 million in transactions through the bank.
In one case, money laundering networks deposited money in the U.S. and quickly withdrew it through ATMs in Colombia, ultimately laundering millions, the U.S. Justice Department said in October. Five TD employees conspired with the network, the Justice Department said.
The charge of money laundering conspiracy carries a maximum penalty of 20 years in prison and a fine of $500,000 or twice the amount of the crime, whichever is greater.
(Reporting by Nivedita Balu in Toronto; Editing by Paul Simao)
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