TD worst-case scenario more likely after drug money laundering allegations | TD Bank hit with $9.2M penalty after failing to report suspicious transactions.

TD Bank Group could be hit with more severe penalties than previously expected, says a banking analyst after a report that the investigation it faces in the U.S. is tied to laundering illicit fentanyl profits. TD worst-case scenario more likely after drug money laundering allegations: analyst

Canada's financial-crime watchdog, FINTRAC, imposed a $9.2 million penalty on The Toronto-Dominion Bank for non-compliance with anti-money laundering and terrorist financing measures.

TD failed to report suspicious transactions, assess money laundering risks, and monitor high-risk clients.

Fintrac found that 96 clients, including a politically exposed foreign individual, were not enrolled in TD's high-risk client program.