Wilfredo Aquino, a former assistant manager at TD Bank's Midtown Manhattan branch, was sentenced to 46 months in prison on July 15 for facilitating a money laundering network that moved hundreds of millions of dollars through the bank's accounts. This marks the first instance of a higher-level employee at TD Bank being held accountable for the extensive money laundering activities conducted through the institution, according to the Justice Department.
Key Details
Aquino's actions allowed the network, led by Da Ying Sze, also known as David, to evade reporting requirements. From 2019 until February 2021, he processed approximately 1,680 official bank checks totaling more than $92 million for Sze's network. The funds were primarily sourced from cash deposits exceeding $10,000, which triggered the bank's obligation to file a Currency Transaction Report (CTR). Assistant Attorney General A. Tysen Duva stated that Aquino leveraged his position to facilitate the criminal activities of the network.
Background
Sze, who pleaded guilty in February 2022 to coordinating a $653 million money laundering conspiracy, operated an unlicensed money transmitting business and bribed bank employees. The IRS Criminal Investigation's Newark Field Office noted that Aquino was aware of the suspicious activities but failed to report them as required by anti-money laundering regulations.
The sentencing of Aquino may lead to increased scrutiny of compliance practices within TD Bank and the banking sector at large, potentially affecting investor confidence and regulatory oversight. Investors will watch for any changes in the bank's compliance policies and further repercussions from this case.