08:30 PM EDT, 10/09/2024 (MT Newswires) -- TD Bank is expected to pay about US$3 billion in penalties and accept limits on its growth in the U.S. as part of a settlement with regulators and prosecutors over charges it failed to properly monitor money laundering by drug cartels, The Wall Street Journal was reporting Wednesday night.

As part of the agreement, the bank's primary U.S. regulator, the Office of the Comptroller of the Currency, is expected to impose an asset cap barring the bank from growing above a certain level in the U.S., according to people familiar with the matter.

TD's U.S. entity intends to plead guilty to criminal charges to resolve a Justice Department investigation, The Wall Street Journal reported last month. Both the Justice Department and the Treasury's Financial Crimes Enforcement Network are planning to put independent monitors in place to watch the bank closely and ensure compliance with the pacts, the people said. The FinCEN monitor is expected to be in place for four years, one of the people said.

The settlement, which may be announced as soon as Thursday, will include the Justice Department, FinCEN, the OCC and the Federal Reserve, the people said. Justice will receive the biggest slice of the penalties, some $1.8 billion, with FinCEN getting $1.3 billion, the people said.

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