Published on oktober 15, 2024, 12:56 am
Image source: Fox News
```json { "TLDR": "TD Bank processed over $1 billion in transfers for two undisclosed crypto firms, facing scrutiny and fines for inadequate monitoring of money laundering. The bank participated in significant transactions with a customer group engaging in high-risk cryptocurrency trading globally. Despite inconsistencies and risks involved, TD Bank briefly explored the crypto sector through an investment bank venture which was later shut down amidst regulatory uncertainty." } ```
TD Bank was involved in processing more than $1 billion in bank transfers from two international crypto platforms, as reported by FinCEN. The recent troubles faced by TD Bank could potentially be linked to two undisclosed cryptocurrency firms situated in Colombia and the United Kingdom.
On October 10, TD Bank’s U.S. arm agreed to pay fines exceeding $3 billion and accept restrictions on its growth within the U.S., settling allegations regarding inadequate monitoring of money laundering activities by criminal organizations. According to a report from FinCEN on the same day, more than $1 billion of TD Bank’s transfer volume was connected to two mysterious cryptocurrency companies. These transactions were carried out by an unidentified firm referred to as “Customer Group C,” reportedly operating in the sales finance and real estate sectors.
The Financial Crimes Enforcement Network (FinCEN) report reveals that the aforementioned customer group conducted monthly wire transfers averaging over $100 million, primarily facilitating third-party cryptocurrency trading in high-risk regions like Colombia, China, and countries in the Middle East. Furthermore, TD Bank participated in transferring over $650 million for “Customer Group C” received from an international crypto exchange.
Despite discrepancies between the transaction volume facilitated by TD Bank and Customer Group C’s initial documentation, including handling more than $420 million for a financial institution providing crypto services in Colombia known for being a high-risk jurisdiction, transactions continued uninterrupted.
Notably, TD Bank briefly explored the cryptocurrency sector through TD Cowen, an independent U.S.-based investment bank that introduced Cowen Digital in March 2022 to offer institutional clients exposure to 16 digital assets such as Bitcoin (BTC) and Ether (ETH). However, this venture came to an end with the closure of TD Cowen’s crypto unit in June 2023 without public disclosure of the reasons behind its cessation.
TD Bank acquired Cowen Bank for $1.3 billion in August 2022 and finalized the deal in March 2023 before shutting down its crypto division. This shutdown coincided with various collapses within crypto firms throughout the previous year amid a backdrop of banking and regulatory turbulence within the U.S., exemplified by incidents like Silvergate’s collapse.
In summary, these developments underscore the intricate relationship between traditional banking institutions like TD Bank and emerging digital asset ecosystems such as cryptocurrencies, reflecting both opportunities and challenges present at this evolving intersection.
Original article posted by Fox News
