An ex-TD Bank employee has now been charged for laundering money to Columbia and has been taken into custody by U.S. authorities.
In a significant development in the ongoing investigation into money laundering activities, a former employee of TD Bank in Florida has been arrested and charged with facilitating a money laundering operation linked to Colombia.
This marks the first arrest of its kind since the Canadian bank was penalized with a staggering $3 billion fine for its involvement in similar illegal activities.
The U.S. arm of TD Bank pleaded guilty in October to conspiracy to commit money laundering, making it the first bank in the United States to admit such wrongdoing.
This guilty plea also makes TD the largest bank to be held accountable for failures related to the Bank Secrecy Act, which is designed to prevent financial institutions from being exploited for illicit transactions.
As part of the penalties, regulators imposed hefty fines, placed a cap on the bank’s assets, and mandated the implementation of government-appointed monitors to oversee its compliance systems.
Investigators found that TD Bank’s deficiencies allowed for the laundering of as much as $670 million derived from narcotics sales.
The latest arrest involves 24-year-old Leonardo Ayala, who worked at a TD Bank branch in Doral, Florida, from February to November 2023.
Ayala is accused of being a key player in a money laundering network, allegedly issuing dozens of debit cards linked to accounts opened under fictitious companies in exchange for bribes.
These accounts were reportedly used to launder money obtained from drug trafficking, with cash withdrawals being made at ATMs located in Colombia.
According to New Jersey’s Attorney General, “The investigation has revealed that millions of dollars were laundered to Colombia through accounts Ayala serviced.”
As of now, Ayala has not publicly commented on the charges against him.
In response to the arrest, a spokesperson for TD Bank stated, “We identified the activity, reported it, and cooperated closely with authorities in their investigation. We continue to actively support their efforts.”
This follows earlier disclosures that TD Bank employees received at least $57,000 in gift cards from a single criminal in 2020 and 2021, who facilitated over $400 million in transactions through the bank.
The U.S. Justice Department has noted that money laundering networks often deposited funds into U.S. accounts and quickly withdrew them using ATMs in Colombia, successfully laundering millions in the process.
Furthermore, five employees of TD Bank were implicated in conspiring with these networks.
The charges against Ayala include conspiracy to commit money laundering, a serious offense that 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.
This latest arrest underscores the ongoing scrutiny of financial institutions and their responsibility to uphold the law, particularly in preventing the misuse of their services for illicit activities.
As investigations continue, authorities are likely to pursue further action against individuals and organizations involved in these money laundering schemes, sending a clear message about the consequences of such criminal behavior.
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Also Read: JPMorgan To Now Pay SEC $151 Million in Violations
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