Former TD Bank Employee Charged in Alleged Drug Cartel Money Laundering Scheme

A former employee of TD Bank in Florida has been arrested for allegedly facilitating a major money-laundering operation tied to drug cartels. The arrest follows the bank’s record $3 billion fine imposed by the US government for systemic failures in monitoring transactions.

Leonardo Ayala, 24, was arrested and charged with one count of money laundering conspiracy, according to the US Attorney’s office in New Jersey. His arrest comes after TD Bank was penalized in October for “long-term, pervasive, and systemic deficiencies” in its procedures for monitoring suspicious financial activities. From January 2018 to April 2024, over 90% of transactions went unmonitored, allowing drug cartels to funnel over $670 million through TD Bank accounts.

Ayala worked at a TD Bank branch in Doral, Florida, near Miami, in 2023. He reportedly used his position to aid the laundering of drug money starting in June 2023. According to court documents, Ayala assisted in issuing debit cards for fake shell accounts, in exchange for bribes. The accounts were allegedly used to move illicit funds through cash withdrawals at ATMs in Colombia.

The money-laundering scheme involved millions of dollars, with one shell account reportedly transferring over $500,000 from the US to Colombia through ATM withdrawals. Another shell company allegedly moved over $800,000 between accounts.

While it is uncommon for the US government to target individual employees in such cases, officials have expressed growing concern over cartels using the US banking system to launder proceeds from fentanyl and other illicit drugs.

Ayala appeared in federal court in Miami on Tuesday and was released on a $100,000 bond, with location monitoring. If convicted, he faces up to 20 years in prison and fines up to $500,000, or twice the laundered amount.

TD Bank, which was also fined in October for its role in the scheme, vowed to improve its monitoring procedures and invest in hiring more anti-money-laundering specialists. The bank also committed to undergoing four years of supervision by the US Treasury Department’s Financial Crimes Enforcement Network (FinCEN).

In a statement following the fine, TD Bank CEO Bharat Masrani acknowledged the failures, apologizing for the lapses that occurred during his tenure.