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Enforcement Release: December 23, 2021
OFAC Settles with TD Bank, N.A. for $115,005.04 Related to Apparent Violations of the North Korea Sanctions Regulations and the Foreign Narcotics Kingpin Sanctions Regulations
TD Bank, N.A. (“TDBNA”), a bank incorporated in Wilmington, Delaware, has agreed to remit $115,005.04 to settle its potential civil liability for two separate matters involving apparent violations of the North Korea Sanctions Regulations and the Foreign Narcotics Kingpin Sanctions Regulations. In the first matter, TDBNA processed 1,479 transactions totaling $382,685.38 and maintained nine accounts on behalf of employees of the North Korean mission to the United Nations without a license from OFAC. In the second matter, TDBNA maintained two accounts for more than four years for a U.S. resident who was listed on OFAC’s list of Specially Designated Nationals and Blocked Persons (“SDN List”). The apparent violations in both cases resulted from multiple sanctions compliance...
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1) THE FNKSR CASE
In the case of the FNKSR violations, TD Bank provided services to (and otherwise dealt in property of) a blocked person, in violation of what is currently 598.202 of the FNKSR. This may be the first enforcement action arising from dealings with an SDN that was also a U.S. resident but was (evidently) not a prisoner (compare MoneyGram Payment Systems, Inc., dealing with blocked prisoners). At any given time, there is a relatively small number of non-prisoner, natural person U.S. residents on the SDN list, but they do exist (compare License No. SDT-005; License No. SDT-009). OFAC does not mention this as a “mitigating factor,” but the scarcity of natural person non-prisoner SDN residents in the U.S. probably...