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ENFORCEMENT INFORMATION FOR JANUARY 13, 2017
Toronto-Dominion Bank Settles Potential Civil Liability, and Separately Receives a Finding of Violation, for Apparent Violations of the Iranian Transactions and Sanctions Regulations and the Cuban Assets Control Regulations: Toronto-Dominion Bank ("TD Bank"), a financial institution headquartered in Toronto, Canada, has agreed to remit $516,105 to settle its potential civil liability for 167 apparent violations of § 515.201 of the Cuban Assets Control Regulations, 31 C.F.R. part 515 (CACR), and § 560.204 of the Iranian Transactions Sanctions Regulations, 31 C.F.R. part 560 (ITSR) (collectively, the "Apparent Violations"). Separately, the U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) has issued a Finding of Violation to TD Bank, the parent company of wholly owned subsidiaries Internaxx Bank SA ("Internaxx") and TD Waterhouse Investment Services (Europe) Limited ("TDWIS"), for 3,491 violations of the CACR and ITSR (collectively, the "Violations").
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1) OFAC states that "TD Bank maintained several accounts for, and processed transactions to or through the United States on behalf of, a Canadian company owned by a Cuban company..." OFAC seems to suggest here that the mere "maintenance" of an account denominated in USD account could have constituted a violation of the CACR, but as an entity not "Subject to the Jurisdiction of the United States" within the meaning of 515.329 of the CACR, it is not clear what if any basis there would be for this determination (compare Civil Enforcement Information (FOV) - Compass Bank (3rd action) (2017) and MasterCard International Incorporated (2016)). The jurisdictional hook for penalizing U.S. banks that maintain accounts for blocked persons is that the maintenance of the account is a service, and the jurisdictional hook for penalizing non-U.S. banks processing...