TD Bank will pay $3 billion in historic money laundering settlement with the Justice Department

WASHINGTON— TD Bank will pay about $3 billion as part of a historic settlement with U.S. authorities, who said Thursday that the financial institution’s lax practices enabled significant money laundering over several years.

Canada-based TD Bank pleaded guilty as part of the money laundering investigation, becoming the largest bank in U.S. history to do so, Attorney General Merrick Garland said.

“TD Bank created an environment that allowed financial crime to thrive,” Garland said.

The Justice Department said the bank’s failure to prevent money laundering made it “convenient” for criminals. This allowed money laundering networks to transfer hundreds of millions of dollars through TD Bank accounts over a period of years, prosecutors said.

The bank did not immediately respond to a message seeking comment Thursday.