Imagine a trusted bank employee secretly helping criminals launder millions of dollars right under the noses of regulators. It’s not just a plot for a Hollywood thriller—it’s a shocking reality that has rocked one of North America’s largest banks. A former Toronto-Dominion (TD) Bank employee, based in New York, has pleaded guilty to playing a pivotal role in a massive money-laundering scheme, funneling hundreds of millions of dollars through the bank’s accounts. But here’s where it gets even more startling: this isn’t an isolated incident. It’s part of a broader investigation by the U.S. Department of Justice into TD’s involvement in moving drug proceeds, raising questions about the bank’s internal controls and corporate culture.
Wilfredo Aquino, a 47-year-old former assistant manager at a TD branch in Midtown Manhattan, admitted to conspiring to launder monetary instruments. Between 2019 and February 2021, Aquino allegedly helped Da Ying Sze (also known as David), the mastermind of a money-laundering network, clean the majority of the network’s cash through his branch. According to court filings, Aquino processed over 1,600 checks totaling more than $92 million for Sze’s network. And this is the part most people miss: nearly all these checks exceeded $10,000, a threshold that legally requires banks to file a currency transaction report for suspicious activity. Yet, Aquino failed to flag these transactions, despite knowing TD had previously closed other accounts linked to Sze for suspicious activity.
The U.S. Department of Justice bluntly stated, ‘Nobody processed more transactions for David’s Network at the Midtown Manhattan store than Aquino.’ But Aquino wasn’t just turning a blind eye—he was actively bending the rules. For instance, he repeatedly accepted digital photos of absent account holders’ IDs instead of requiring Sze to present his own identification, as mandated by law and bank policy. In one instance, after a $200,000 wire transfer was flagged, a colleague jokingly emailed Aquino, ‘You guys really need to shut this down LOL.’ Yet, the scheme continued unchecked.
Here’s where it gets controversial: In 2020, a TD fraud specialist explicitly warned Aquino that Sze’s activity ‘looks like money laundering’ and advised the bank ‘cannot encourage the way they are conducting business.’ Aquino promised to ensure compliance, but the network’s operations persisted. Surveillance footage from 2021 even captured Aquino processing a large cash transaction for Sze, who later handed him a stack of retail gift cards as compensation—a blatant violation of anti-money laundering regulations. Aquino reportedly accepted gift cards totaling over $11,000 from Sze.
TD Bank has since pleaded guilty to conspiracy to commit money laundering, agreeing to pay over $3 billion in penalties and implement stricter compliance measures. Meanwhile, Sze pleaded guilty in 2022 to coordinating a $653 million money-laundering conspiracy, much of which flowed through TD’s New York branches. But the bigger question remains: How did this happen under the watch of a major financial institution? TD has unveiled a turnaround plan, hiring hundreds of new compliance employees and investing in technology to strengthen its anti-money laundering (AML) program. ‘We are actively cooperating with law enforcement to bring those who violated the law to justice,’ said TD spokesperson Elizabeth Goldenshtein. Yet, critics argue that systemic issues within the bank’s culture may have enabled such misconduct.
Special Agent Jenifer Piovesan of the IRS Criminal Investigation Newark Field Office summed it up: ‘Wilfredo Aquino’s position at TD Bank required him to report suspicious activity and adhere to robust AML regulations. Instead, he prioritized enriching himself.’ Aquino’s sentencing is scheduled for May 12, but the fallout from this scandal will likely linger far longer. Is this an isolated case of employee misconduct, or a symptom of deeper problems in the banking industry? We’d love to hear your thoughts in the comments—do you think TD’s remediation efforts go far enough, or is more systemic change needed?
