((Automated translation by Reuters, please see disclaimer https://bit.ly/rtrsauto))
(Added details from paragraph 2)
Canadian bank TD Bank TD.TO is expected to pay about $3 billion in penalties as part of a deal with U.S. regulators and prosecutors over accusations it failed to properly monitor money laundering by drug cartels, the Wall Street Journal reported.
The bank’s U.S. unit is expected to plead guilty to the charges on Thursday, according to Wednesday’s report.
TD Bank did not immediately respond to a Reuters request for comment.
As part of the deal, the bank’s main U.S. regulator, the Office of the Comptroller of the Currency (OCC), would also impose an asset limit prohibiting the Canadian bank from growing beyond a certain level in the country, the newspaper reported, citing people familiar with the matter.
The U.S. Department of Justice (DOJ) and the Department of Finance’s Financial Crimes Enforcement Network (FinCEN) both plan to establish independent monitors to closely monitor the bank and ensure it is complying with the covenants, according to the report.
FinCEN’s monitor is expected to be in place for four years, the WSJ reported, citing a person familiar with the matter.
The settlement will include the DOJ, FinCEN, the OCC and the Federal Reserve, among which the Department of Justice will take the largest share of the penalties which amount to approximately $1.8 billion, while FinCEN will receive 1 .3 billion dollars, according to the report.
Spokespeople for the DOJ, OCC and FinCEN did not immediately respond to Reuters requests for comment.
