TD Bank's $13.4 billion purchase of US bank First Horizon collapsed over regulator concerns about the Canadian lender's anti-money laundering (AML) practices, according to the Wall Street Journal.
Last week, TD pulled the First Horizon acquisition, blaming regulators. The deal was first announced in February 2022 but had been stalled by multiple times.
While it has been reported that the delays were over fears that TD could become too influential in the US market, the WSJ reports that there were other concerns.
The Office of the Comptroller of the Currency and the Federal Reserve have raised TD Bank’s handling of unusual transactions and its timeliness in reporting suspicious activity to them, says the Journal, citing sources.