US justice department links TD Bank compliance lapses to laundering millions through Colombian ATMs
The US Department of Justice has arrested and charged Leonardo Ayala, a 24-year-old former Toronto-Dominion Bank (TD Bank) employee, with conspiracy to launder money.
Ayala’s arrest marks the latest in a series of charges tied to compliance failures at the bank’s US retail division, as reported by BNN Bloomberg.
Ayala worked as a customer liaison at a TD Bank branch in Doral, Florida, from February to November 2023. Prosecutors allege that, starting in June, he issued debit cards for accounts opened by another employee in the names of shell companies.
These accounts were then allegedly used to launder millions of dollars in drug money through cash withdrawals at ATMs in Colombia.
According to court documents, Ayala repeatedly issued debit cards for TD Bank accounts originally opened in New Jersey.
These cards were mailed to an address in New Jersey, despite Ayala knowing the requests came from individuals who were not the account holders.
Prosecutors also allege Ayala received $2,900 in payments via a money-transfer app from a Venezuelan national.
Ayala’s case is linked to a broader investigation into TD Bank’s failure to prevent money laundering by drug cartels and other criminals.
In October, the US Department of Justice, Federal Reserve, and Office of the Comptroller of the Currency announced a resolution following extensive probes into these compliance lapses.
The Canadian bank agreed to pay nearly $3.1bn in fines and penalties and faces restrictions on the growth of its US retail banking assets.
The Justice Department’s filings outlined three separate money-laundering conspiracies involving TD Bank branches.
Two other former TD Bank employees, one from New Jersey and another from Florida, have already been charged in connection with the same scheme, referred to as the ‘Colombian ATM typology.’
Prosecutors have identified a total of five bank insiders who allegedly participated in the conspiracy, often in exchange for fees.
Toronto-Dominion Bank spokesperson Elizabeth Goldenshtein stated, “We identified the activity, reported it, and cooperated closely with authorities in their investigation. We continue to actively support their efforts.”
Ayala, reached by phone, declined to comment on the allegations. He made his first court appearance in Miami on Tuesday.
