News Summary
TD Bank is set to close 38 branches across 10 states and Washington D.C., including three in Pennsylvania, effective June 5. This move is part of a strategic restructuring following a $3 billion settlement with the Department of Justice regarding money laundering violations. The closures reflect the bank’s efforts to streamline operations and enhance compliance after investigations uncovered serious regulatory failures. Affected customers will still have access to about 1,100 remaining branches nationwide.
Pennsylvania
TD Bank has announced the upcoming closure of 38 branches across 10 states and Washington D.C., with the closures set to take effect on June 5. Among these, three branches located in Pennsylvania will be affected as part of a broader strategy aiming to streamline operations following a significant financial settlement.
Background of Closures
The decision to close these branches comes after TD Bank entered into a $3 billion settlement with the federal Department of Justice (DOJ) concerning violations related to money laundering. Investigations revealed that the bank had failed to prevent illegal transactions connected to drug cartels and other criminal activities. This compliance failure was notably linked to shortcomings under the federal Bank Secrecy Act, which allowed criminal proceeds to move undetected for an extended period.
As part of the money laundering scheme, allegations emerged that some bank employees accepted bribes, including gift cards, to file misleading reports concerning certain transactions. These findings prompted a reevaluation of TD Bank’s operations and compliance practices.
State-by-State Impact
The closures will primarily affect branches in the Northeast and Mid-Atlantic regions, although some locations are also earmarked for closure in the Southeast. The states involved in these closures include:
- Connecticut
- Florida
- Maine
- Massachusetts
- New Hampshire
- New Jersey
- New York
- Pennsylvania
- South Carolina
- Virginia
Additionally, branches in the District of Columbia will also be closing, affecting many customers in urban areas.
Strategic Restructuring
These branch closures coincide with a significant restructuring within TD Bank, marked notably by a leadership change. Raymond Chun has replaced Baharat Masrani as CEO, a shift reflecting the need for renewed oversight and direction in the wake of the scandal. Alongside this leadership overhaul, adjustments to compensation for key executives—such as Leo Salom, the bank’s U.S. retail banking head—have also been initiated as part of ongoing internal reforms.
A representative from TD Bank emphasized the organization’s commitment to ensuring a smooth transition for both customers and employees affected by the closures. While these branch locations will no longer operate, customers can still access services through the approximately 1,100 remaining stores nationwide.
Future Implications
Despite the bank’s efforts to move forward, the repercussions of the money laundering failures are expected to pose significant ongoing challenges. According to the board chairman Alan MacGibbon, the impact of these compliance failures will likely continue to affect TD Bank in the foreseeable future. This acknowledgment reflects a broader concern within the banking industry regarding compliance standards and the importance of robust operational practices.
As TD Bank navigates these changes, affected customers in Pennsylvania and other states will need to adapt to the loss of local branches while remaining vigilant about their banking services. The branch closures represent not only a response to recent events but also a fundamental shift in how the bank operates amid evolving compliance expectations.
Deeper Dive: News & Info About This Topic
- PennLive: Major Bank Closing Branches in PA Soon
- AS: TD Bank to Close 38 Offices in 10 States
- Banking Dive: TD Bank Branch Closures
- Philly Burbs: TD Bank Branches Closing in Pennsylvania
- MassLive: Major Bank Closing 38 Branches Next Month
- Wikipedia: TD Bank
- Google Search: TD Bank closure
- Google Scholar: TD Bank money laundering
- Encyclopedia Britannica: Bank Secrecy Act
- Google News: TD Bank branch closures
Author: STAFF HERE PHILADELPHIA WRITER
PHILADELPHIA STAFF WRITER The PHILADELPHIA STAFF WRITER represents the experienced team at HEREPhiladelphia.com, your go-to source for actionable local news and information in Philadelphia, Philadelphia County, and beyond. Specializing in "news you can use," we cover essential topics like product reviews for personal and business needs, local business directories, politics, real estate trends, neighborhood insights, and state news affecting the area—with deep expertise drawn from years of dedicated reporting and strong community input, including local press releases and business updates. We deliver top reporting on high-value events such as Mummers Parade, Philadelphia Flower Show, and Thanksgiving Day Parade. Our coverage extends to key organizations like the Greater Philadelphia Chamber of Commerce and United Way of Greater Philadelphia, plus leading businesses in telecommunications, food services, and healthcare that power the local economy such as Comcast, Aramark, and Children's Hospital of Philadelphia. As part of the broader HERE network, we provide comprehensive, credible insights into Pennsylvania's dynamic landscape.
