TD Bank is set to close dozens of branches across multiple states, including five in New Jersey, following its guilty plea in a money laundering scheme that funneled cash to drug cartels.
The decision comes months after TD Bank agreed to pay a $3 billion fine for failing to meet its responsibilities under the federal Bank Secrecy Act. This act requires financial institutions to report suspicious activity potentially linked to criminal activity.
The closures span 10 states and the District of Columbia, as listed in filings to the Office of the Comptroller of the Currency obtained by Fast Company. The New Jersey branches scheduled for closure in June are located in Cedar Grove, Marlton, Ringwood, Raritan Township, and Spring Lake Heights.
Other states affected by the closures include Connecticut, Florida, Maine, Massachusetts, New Hampshire, New York, Pennsylvania, South Carolina, Virginia, and Washington, D.C.
In a statement to Fast Company, a TD Bank representative emphasized the company’s focus on making the transition as smooth as possible for customers and employees.
Before pleading guilty, federal prosecutors highlighted that deficiencies in TD Bank’s anti-money laundering compliance program allowed criminal proceeds to flow to Colombian cartels. Some bank tellers accepted gift cards as bribes in exchange for filing false or misleading reports on certain transactions, according to Deputy Secretary of the Treasury Wally Adeyemo.
“The bank enabled drug trafficking,” Adeyemo stated.
As part of the agreement, TD Bank will undergo a four-year monitorship to oversee extensive remedial measures, including reviewing its anti-money laundering compliance program.
TD Bank’s U.S. headquarters are located in southern New Jersey.
— new from Patch