TD takes US$450 million provision in U.S. money-laundering probe

Toronto-Dominion Bank has taken an initial provision of US$450 million in connection with U.S. investigations into its anti-money laundering practices, and said it expects additional penalties to come.

Canada’s second-largest bank disclosed the charge in a statement Tuesday after markets closed. It cautioned that the full cost of the fines it might eventually face is “unknown and not reliably estimable at this time.”   

Toronto-Dominion is in discussions with three U.S. regulators plus the Department of Justice to settle the matter. The $450 million provision is related to talks with just one of those regulators.

Analysts have previously estimated that the bank might ultimately face fines ranging from $500 million to $1 billion or more.