Three news to start your week: October 14
TD Bank Faces $3 Billion in Penalties in US Settlement
(The Wall Street Journal)
TD Bank is expected to pay approximately $3 billion in penalties and accept restrictions on its growth in the US as part of a settlement with regulators and prosecutors concerning allegations of inadequate monitoring of money laundering linked to drug cartels.
According to informed sources, under this agreement, the bank's primary US regulator, the Office of the Comptroller of the Currency, is anticipated to enforce an asset cap, preventing the bank's retail operations from expanding beyond a specified level in the US.
TD's US division plans to plead guilty to criminal charges to address a Justice Department investigation. The Justice Department and the Treasury's Financial Crimes Enforcement Network intend to appoint independent monitors to closely oversee the bank and ensure adherence to the established agreements. According to one insider, the monitor from FinCEN is expected to remain in place for four years.
Crypto.com sues SEC after receiving legal threat from US regulator
(Financial Times)
Crypto.com has initiated legal action against the US Securities and Exchange Commission (SEC), accusing the agency of exceeding its authority after receiving a Wells notice, which signifies impending legal action for allegedly selling unregistered tokens.
Based in Singapore, the cryptocurrency exchange is the latest victim of the SEC's scrutiny. The regulator intensifies its pursuit of major players in the industry for breaching US securities laws by offering unregistered securities. In a bold move, Crypto.com is taking a stand to defend the future of the cryptocurrency sector in the United States.
Many executives and investors within the crypto community have criticized the SEC's tactics as "regulation by enforcement" and have publicly rallied behind Donald Trump's presidential campaign, hoping he will create a more favorable regulatory environment for cryptocurrencies.
Brazil's top court says X paid pending fines to wrong bank
(Reuters)
As reported by Brazil's Supreme Court, X recently mishandled a $5 million payment in Brazil, transferring it to an incorrect bank. This issue adds to a series of complications that the company, formerly known as Twitter, has faced in the country.
In late August, Brazil's Supreme Court banned the platform for failing to comply with content moderation orders and appoint a legal representative locally. Additionally, X was subjected to a hefty $5.2 million fine.
Although X's legal team submitted evidence indicating the fines were paid, the court clarified that the funds were sent to an incorrect bank account.
Since then, the court has lifted X's ban in Brazil.
