The vast majority of transfers flagged as suspicious by transactional monitoring systems are eventually cleared as false positives, racking up compliance costs for financial institutions and undermining their ability to identify illegal money flows, say sources.
U.S. financial regulators Monday fined Canada-based TD Bank $52 million for willfully failing to report suspicious transactions tied to one of the largest-ever known Ponzi schemes.
Plaintiffs suing Toronto Dominion Bank over its ties to a convicted Ponzi schemer will likely reject a proposed comprehensive settlement that would grant the institution immunity from future litigation, say attorneys.
Several domestic and international banks are retraining investigators tasked with identifying fraud and money laundering to better uncover Ponzi schemes, say compliance officers and consultants.
Federal financial regulators are questioning TD Bank about potential Bank Secrecy Act compliance lapses identified in the wake of the conviction of Florida-based Ponzi schemer Scott Rothstein, say sources.
Toronto-Dominion Bank must pay a Texas investment company $67 million for its role in helping convicted attorney Scott Rothstein run a $1.2 billion Ponzi scheme, a Miami jury ruled Wednesday.