OFAC announces settlement with TD Bank

January 13, 2017

On January 13, 2017, OFAC announced a $516,105 settlement with TD Bank for 167 apparent violations of the Cuban Assets Control Regulations (CACR) and Iranian Transactions and Sanctions Regulations (ITSR).  According to the announcement, beginning in 2003 or 2004, TD Bank's Global Trade Finance business, based in Canada, engaged in a series of trade finance transactions that generally involved import-export letters of credit for TD Bank's Canadian customers.  OFAC found that the bank failed to adequately screen these transactions for potential OFAC violations.  Consequently, TD Bank maintained several accounts for and processed transactions to or through the United States on behalf of a Canadian company owned by a Cuban company.  TD Bank had reason to know of the customer’s connections to Cuba, as well as actual knowledge by several employees and business lines.  OFAC also concluded that TD Bank had several accounts in Canada and processed transactions for a "freight, cargo, and shipping business" that was a sales agent for an entity on the SDN list located in Iran.  OFAC determined that TD Bank voluntarily self-disclosed the apparent violations and that the apparent violations constitute a non-egregious case.  In addition, OFAC issued a Finding of a Violation to TD Bank for its subsidiaries', Internaxx Bank SA and TD Waterhouse Investment Services Ltd. (TDWIS), violations of the CACR and ITSR.  From August 2007 to November 2013, Internaxx and TDWIS processed 3,491 securities-related transactions to, through, or within the United States that were for or on behalf of persons ordinarily resident and located in Iran or Cuba.