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US charges ex-TD Bank employee with helping to launder money to Colombia
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US charges ex-TD Bank employee with helping to launder money to Colombia
Dec 11, 2024 9:57 AM

TORONTO, Dec 11 (Reuters) - A former TD Bank

employee based in Florida was arrested and charged with

facilitating money laundering to Colombia, New Jersey's attorney

general said on Wednesday, in the first such arrest since the

Canadian lender paid a $3 billion fine.

TD Bank's U.S. arm pleaded guilty in October to conspiracy to

commit money laundering, becoming the first bank in the U.S. to

do so. It also is the largest bank to plead guilty to U.S. Bank

Secrecy Act program failures.

Regulators levied hefty fines, an asset cap and asked to install

government-ordered monitors for, among other things, failures in

TD's compliance system that enabled laundering of up to $670

million from the sale of narcotics.

Dozens of people have been arrested or charged in the U.S.

in connection with money laundering involving TD in recent

years.

In the latest case, Leonardo Ayala, 24, who worked at a TD Bank

outlet in Doral, Florida between February and November 2023, is

accused of assisting a money laundering network by issuing

dozens of debit cards for accounts opened in the names of shell

companies in exchange for bribes, court documents show.

Those accounts were used to launder proceeds from narcotic

trafficking through cash withdrawals at ATMs in Colombia,

according to a statement by New Jersey's attorney general.

"The investigation has revealed that millions of dollars

were laundered to Colombia through accounts Ayala serviced," the

statement said.

Ayala could not immediately be reached for comment.

"We identified the activity, reported it, and cooperated

closely with authorities in their investigation. We continue to

actively support their efforts," a TD spokesperson said.

In October, U.S. officials said TD bank employees received

at least $57,000 in gift cards in 2020 and 2021 from one

criminal who moved more than $400 million in transactions

through the bank.

In one case, money laundering networks deposited funds in the

U.S. and quickly withdrew them using ATMs in Colombia,

ultimately laundering millions, the U.S. Justice department said

in October. Five TD employees conspired with the network, the

Justice Department said.

The charge of money laundering conspiracy carries a maximum

penalty of 20 years in prison and a fine of $500,000 or twice

the amount involved in the offense, whichever is greater.

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