FinCEN accuses TD Bank of failing to report suspicious cryptocurrency activities in a $3 billion money laundering penalty

ChainCatcher news, according to The Block, the Financial Crimes Enforcement Network (FinCEN) has accused banking giant TD Bank of failing to report suspicious activities involving an unnamed group of clients engaged in international cryptocurrency transactions.

FinCEN stated that TD Bank processed over 2,000 transactions for a company referred to as "Client Group C" within nine months, which was identified as "allegedly engaged in sales in the financial and real estate sectors." Client Group C misrepresented its planned international wire activities to TD Bank, claiming that its annual sales would not exceed $1 million. In fact, Client Group C allegedly conducted over $1 billion in transactions through TD Bank. Furthermore, 90% of Client Group C's funds came from a UK cryptocurrency exchange, and 60% of the funds flowed to financial institutions in Colombia providing digital asset-related services. Client Group C did not list Colombia as one of the jurisdictions it intended to deal with while working with TD Bank and continued to engage with "high-risk industries and companies" in regions such as the Middle East.

Previous news reported that TD Bank became the first bank in the U.S. to admit to conspiracy to launder money, resulting in a $3 billion fine.