TD Bank profits slump amid AML woes, court blocks US BO reporting, Russian money laundering network dismantled

From Paul O'Donoghue at AMLi

TD Bank’s AML woes seem never-ending - and the company’s latest financial update didn’t give the sense that this trend will be broken any time soon.

Shares in the company fell by 6% after it revealed that it missed its earnings targets during the fourth-quarter.

Its U.S. retail business was particularly hard-hit, with profits falling by 34%.

TD warned that 2025 will also likely be a tough year, as the business looks to shore up its risk infrastructure.

The company is feeling the impact of a major U.S. regulatory probe into its anti-money laundering program, resulting in an asset cap and a $3 billion penalty.

The investigation uncovered a string of shocking breaches and shortfalls in the bank's compliance efforts, allowing illicit activities such as fentanyl and terrorist financing to flourish.

BENEFICIAL OWNERSHIP: Despite being viewed as a crucial AML measure, there’s been widespread pushback in the U.S. over attempts to introduce beneficial ownership reporting.

The policy has now taken a hammer blow, after a court in Texas imposed a nationwide injunction blocking the enforcement of the Corporate Transparency Act’s BO reporting requirement.

Several business groups had argued that the law infringes on states' rights to regulate companies under their jurisdiction.

The court ruled in their favour. It found that the law, which mandates corporations to disclose their beneficial owners, was likely unconstitutional.

The decision marks a major setback for the likes of FinCen, which had hailed how the law would help track illicit activities through anonymous corporate structures.

NCA: Law enforcement this week announced an incredible AML win.

An international operation, led by the UK’s National Crime Agency (NCA), has dismantled two major Russian money laundering networks tied to organized crime and the Kremlin. The operation, named "Destabilise," resulted in the seizure of over £20 million worth of assets and the arrest of 84 individuals across 30 countries.

The networks, known as Smart and TGR, were linked to the use of cryptocurrencies to launder illicit funds. The NCA collaborated with law enforcement agencies in various countries, including the U.S. and EU member states, to trace the criminal organizations’ financial networks. This operation is part of a broader effort to combat money laundering and financial crime across borders, especially in the context of ongoing sanctions on Russia.

WATCHDOGS

FCA: The UK’s Financial Conduct Authority (FCA) came under fire from several sides recently - the latest is a critical report from a group of MPs which described the regulator as "opaque and unaccountable."

The 358-page report, based on testimony from 175 individuals, accused the FCA of being slow to act and slow to admit its mistakes.

In a staff email, FCA executives acknowledged the criticism but emphasized their commitment to learning from feedback and making improvements.

The FCA disputed the report’s characterization, particularly its focus on past issues such as the collapses of London Capital & Finance and Collateral, which it said had already prompted reforms.

The regulator also emphasized the improvements made under its transformation program, including enhanced stakeholder engagement and operational efficiency.

ANNOUNCEMENT: Dates for fast-growing European Anti-Financial Crime Summit confirmed – Dublin, May 7

‘EUROPEAN Anti-Financial Crime Summit 2025′ (EAFCS 2025), hosted by AML Intelligence, is set to return to Dublin on May 7 next, it’s been confirmed.

EAFCS is a key platform for top executives from banks, financial institutions, tech companies, regulators, and policymakers to discuss the most pressing issues in anti-financial crime.

The summit, which has become one of the most significant events on the European calendar, offers attendees the chance to hear from high-profile speakers and network with influential decision-makers in the field.

Join 900 Delegates from across the globe. Registration is now open . Early Bird Rates now available.

COMMISSIONER: Maria Luís Albuquerque, the new EU financial services commissioner, has outlined the beginnings of her plans to strengthen the EU's financial markets during her five-year term.

She began her mandate on December 1, 2024, with a focus on meeting with financial institutions and other stakeholders to understand the key challenges they face.

Albuquerque, Portugal’s former finance minister, emphasized the importance of creating a financial union that benefits all market participants.

Her priorities include reviving a key data exchange platform for Financial Intelligence Units (FIUs) and unlocking private investments to drive economic growth.

Albuquerque replaces Mairead McGuinness, who recently completed her term as financial services commissioner.

CRIME

VIETNAM: Finally, Vietnam's High People's Court has upheld the death sentence for Truong My Lan, a prominent real estate tycoon convicted of embezzlement and bribery in a $12 billion fraud case.

Lan, chairwoman of the Van Thinh Phat Holdings Group, was found guilty of orchestrating one of the largest financial frauds in Vietnam’s history.

The court rejected her appeal and determined that her actions caused unprecedented harm to the economy and society. Lan's legal team had argued for a lighter sentence, citing her remorse and partial repayment of the embezzled funds.

However, the prosecution maintained that her crimes were too severe to warrant leniency - although Lan still has the right to request a retrial.

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Have a great Friday 👋

Stephen and the team at AMlintelligence.