We don’t yet know if a whistleblower — even more than one — helped provide evidence of the stunning AML failures at TD Bank, but financial fraud attorney Liz Soltan says regardless of how the investigation unfolded, compliance professionals can learn many lessons from it.
After TD Bank incurred a record-breaking $3 billion-plus fine for its money-laundering-related failures, bank compliance officers might be wondering, “Are we next?” The answer to that question may depend on another one: “Was there a whistleblower — or more than one — behind the TD Bank case?”
We may never know for sure, nor should we, given the need to protect whistleblower confidentiality. But based on some of the details disclosed in the plea agreement and consent order, it is reasonable to wonder whether one or more insiders may have helped build the government’s case.
Ignoring warning bells
First things first, let’s not shed a tear for TD Bank. The problems at TD Bank are not the kind a well-meaning compliance department could slide into. Instead, TD Bank ignored numerous warning signs and opportunities to steer clear of disaster, a common theme in whistleblower cases.
Warning One came from the government itself, over a decade ago. In 2013, the Financial Crimes Enforcement Network (FinCEN) and the Office of…
