The U.S. Department of Justice stated that TD Bank had “long-term, pervasive, and systemic deficiencies” in its transaction monitoring procedures. Between January 2018 and April 2024, over 90% of transactions were left unmonitored, allowing three money laundering networks to move more than $670 million through TD Bank accounts, according to court filings.

In one case, TD Bank employees accepted over $57,000 in gift cards in exchange for processing more than $470 million in cash deposits from a money laundering network, deliberately bypassing required reporting, according to the U.S. Department of Justice (DoJ). The Office of the Comptroller of the Currency (OCC) added that TD Bank processed hundreds of millions of dollars in transactions that clearly showed signs of highly suspicious activity.

As part of the settlement, TD Bank will undergo four years of monitoring by the Financial Crimes Enforcement Network (FinCEN) to ensure compliance with the agreement. “While most financial institutions have worked with FinCEN to protect the integrity of the U.S. financial system, TD Bank did the opposite,” stated Wally Adeyemo, Deputy Secretary of the Treasury. He highlighted that the bank’s failures enabled a range of illicit activities, from narcotics and fentanyl trafficking to terrorist financing and human trafficking.

The U.S. Federal Reserve has also fined TD Bank and will require it to relocate its anti-money laundering compliance office to the U.S. In a notable part of the agreement, the OCC is placing restrictions on TD Bank’s growth within the U.S., a rare but not unprecedented measure. Wells Fargo faced similar restrictions in 2018 after being fined for widespread consumer abuses, including creating millions of fake accounts, and continues to operate under those restrictions today.

In a recent statement, Gurbir Grewal, the SEC’s enforcement director, highlighted the critical importance of auditors in maintaining the integrity of financial markets, stating that Borgers and his firm failed significantly in their duties. This lapse has led to what he described as "one of the largest wholesale failures by gatekeepers" in the sector.

While the settlement did not specify if Trump Media was directly implicated in the fraud accusations against BF Borgers, the connection raises concerns due to the firm's ongoing role with Trump's company post its public merger with Digital World Acquisitions Corp. Notably, Trump Media is the most prominent client of BF Borgers by market capitalization. Despite its size and client base, BF Borgers has been critiqued for insufficient staffing during a period of rapid client growth, a concern echoed by the Public Company Accounting Oversight Board (PCAOB) in its recent inspections revealing a 100% deficiency rate in the firm's audit practices.

This situation underscores the vital role of rigorous auditing and regulatory oversight in protecting investors and maintaining trust in the financial statements of publicly traded companies.

The banker, who served as a board member at a small private bank in Geneva, is accused of depositing significant sums of money into his own account in 2008. However, this money actually belonged to a third party who wanted to keep their ownership hidden from authorities.

Authorities claim that the banker betrayed the trust of his client and used the money for personal purposes, including providing loans to associates, family, and friends. The prosecutor stated that the funds were primarily used to support the lavish lifestyle of the accused and his family.

The fraudulent activities came to light when authorities in Switzerland raised concerns about large transfers made by the banker to businesses in the Dominican Republic. Investigators found that these funds had a criminal origin.

Additionally, the banker is accused of forging bank statements to deceive his client. Prosecutors allege that he attempted to use at least SFr1 million of the client’s funds to keep his bank afloat, even after being notified of a criminal investigation against him.

The individual, whose identity is protected by Swiss law, is accused of being involved in a complex criminal conspiracy that led to the misappropriation of over SFr14 million ($15.4 million) over seven years until 2015.