https://en.haberler.com/record-penalty-for-crypto-violation-us-banking-17931848/

The large American bank TD Bank has been hit with a record fine of $3 billion for failing to report money laundering and suspicious cryptocurrency transactions. FinCEN claims that the bank ignored billions of dollars in suspicious cryptocurrency activities.

A new turning point is being experienced in the fight against financial crimes. The penalty imposed on TD Bank has been recorded as the largest monetary fine in banking history. This situation highlights the complexity of the interaction between traditional financial institutions and the world of cryptocurrencies, while also indicating the increasing pressure from regulatory bodies.

Major Vulnerability in Crypto Audit Cost the Bank Dearly

The Financial Crimes Enforcement Network (FinCEN) reported that TD Bank conducted over 2,000 suspicious transactions with a firm referred to as "Customer Group C" over a nine-month period. Although this firm claimed it would not exceed $1 million annually, it actually moved over $1 billion.

The financial activities of Customer Group C had many characteristics considered high-risk. It brought in 90% of its funds from a UK-based cryptocurrency exchange while sending 60% to Colombian financial institutions that provide services related to cryptocurrency assets. It also conducted transactions with high-risk sectors in China and the Middle East.

In its report, FinCEN stated that TD Bank did not proactively report these suspicious activities. The bank only took action after receiving multiple inquiries from law enforcement. This indicates that the bank's written policies regarding cryptocurrency transactions were inadequate.

TD Bank admitted to violations of the Bank Secrecy Act and money laundering offenses. The bank will pay a fine of $1.8 billion and faces a total of $3.09 billion in penalties, including an additional $1.3 billion imposed by FinCEN. This penalty has been recorded as the largest ever imposed under the Bank Secrecy Act.