Enforcement Release - TD Bank N.A.

Date issued: Dec. 23 2021

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TURBOFAC Commentary (771 words)

Notes:

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...