A former TD Bank employee in the US is facing criminal charges for allegedly using his position at the financial institution to facilitate money laundering — the second time this year a former employee has been charged.
The indictment announced Wednesday appears to be linked to a wide-ranging anti-money laundering investigation into the Canadian bank’s U.S. operations that led to a $3 billion fine in October.
The US Department of Justice said that Leonardo Ayala, 24, was arrested and charged on Tuesday with helping to launder millions of dollars in drug smuggling proceeds into Colombia.
According to the indictment, Ayala worked at a TD Bank location in Doral, Florida, between February and November 2023.
Prosecutors say that beginning in June 2023, Ayala allegedly assisted a money laundering network by issuing dozens of debit cards to accounts opened in the names of shell companies in exchange for bribes.
These accounts were opened by another TD Bank employee, who was not named, according to the indictment.
“These accounts were then allegedly used to launder millions of dollars in drug proceeds through cash withdrawals from ATMs in Colombia,” the Justice Department said in a statement.
Ayala made his first court appearance in Miami after his arrest, but is scheduled to be tried in New Jersey, where the district attorney also announced the indictment on Wednesday. The allegations contained in the indictment have not yet been proven in court.
Get weekly money news
Get expert insights and Q&As on markets, housing, inflation and personal finance information delivered to you every Saturday.
“We identified and reported the activity and cooperated closely with authorities in their investigation. We continue to actively support their efforts,” a TD spokesperson told Global News.
The charge Ayala faces, conspiracy to commit money laundering, carries a maximum penalty of 20 years in prison and a fine of $500,000 or twice the amount involved in the crime, whichever is greater.
In October, the US branch of TD Bank pleaded guilty to violating US anti-money laundering laws — the largest bank ever to do so — and creating what prosecutors described as a “congenial” environment that bad actors could exploit for years.
TD agreed to pay more than $3 billion in fines to resolve the charges. The plea deal also included a rare imposition of asset caps and other restrictions on the bank’s U.S. business, preventing a planned expansion plan.
At the time the plea deal was announced, US officials said TD employees received at least $57,000 in gift cards in 2020 and 2021 from a criminal who moved more than $400 million in transactions through the bank.
In one case, prosecutors alleged that money laundering networks deposited money in the United States and quickly withdrew it using ATMs in Colombia, ultimately laundering millions — allegations that match the indictment announced Wednesday.
The US Department of Justice said in October that five TD employees conspired with the network in the alleged scheme.
In November, a former TD Bank employee who worked in the anti-money laundering department in Manhattan was accused of stealing customers’ personal information and distributing it on Telegram.
TD said it is making the investments, changes and improvements required to meet obligations related to anti-money laundering programs in Canada and the United States.
Fintrac, Canada’s national financial intelligence agency, imposed a record $9.2 million fine on TD earlier this year over lax money laundering controls.
Prime Minister Justin Trudeau said in October he was “concerned” about the alleged actions at TD, and the federal government says it has introduced a slew of measures to strengthen oversight of money laundering in Canada.
– With files from Reuters
&Copy 2024 Global News, a division of Corus Entertainment Inc.
