08:58 AM EST, 11/25/2024 (MT Newswires) -- TD Bank (TD.TO, TD) is preparing to install U.S. government-ordered monitors and has moved to reassure employees that it had enough resources to comply with laws prohibiting money laundering, according to two sources familiar with the situation, Reuters is reporting Monday.

It noted TD became the largest bank in U.S. history to plead guilty to violating a federal law aimed at preventing money laundering, and agreed to pay over US$3-billion in penalties to resolve the charges in September.

Regulators said TD ignored red flags from high-risk customers and created a "convenient" environment for bad actors to exploit, including facilitating over $400-million in transactions to launder funds on behalf of people selling fentanyl and other deadly drugs and employees taking bribes from criminal gangs.

The lender is in the process of finding a monitor, typically a third-party consultant or law firm, to observe its operations, track its progress on risk and controls, and report to regulators, according to one of the sources, who declined to be identified discussing compliance matters.

(Market Chatter news is derived from conversations with market professionals globally, and/or from other media sources. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)