Toronto-Dominion Bank (TD.US) is expected to pay a $3 billion fine to US regulators and prosecutors to settle the case.

Toronto-Dominion Bank (TD.US) is reportedly expected to pay about $3 billion as part of a settlement with US regulators and prosecutors over allegations it failed to properly monitor money laundering by drug trafficking groups. The Toronto-Dominion Bank accepted a probe by the US Department of Justice, bank regulators and the Treasury Department over allegations that several of its branches in the US were involved in money laundering and other financial crimes. Prosecutors alleged that a former employee of the bank's Florida branch received a series of bribes to help clients evade anti-money laundering measures and move millions of dollars to Colombia. In another case, a former employee of the bank's New York branch admitted to defrauding a client by circumventing the bank's compliance measures. Toronto-Dominion Bank's US subsidiary is expected to plead guilty to the charges on Thursday, according to reports. As part of the settlement, the Office of the Comptroller of the Currency is also expected to impose asset restrictions on Toronto-Dominion Bank, barring it from growing its US business beyond a certain level. The US Department of Justice and the Treasury Department's Financial Crimes Enforcement Network also plan to establish independent oversight to closely monitor Toronto-Dominion Bank and ensure it complies with the agreement.