Former Employees Allege Discriminatory Firings
A group of former Chinese American employees has filed a class action lawsuit against Toronto-Dominion Bank in the United States, claiming they were unjustly terminated after being linked to Chinese money brokers who used the bank to launder millions of dollars. According to court documents filed on November 20, 2025, the plaintiffs allege TD Bank enforced its anti-money laundering (AML) policies in a manner that intentionally targeted and disproportionately impacted employees of Chinese descent.
Targeted Enforcement at Chinatown Branches
The lawsuit claims TD Bank aggressively and disparately applied AML procedures specifically against Chinese and Chinese American staff working at its New York City Chinatown branches. Court documents reveal that more than 22 employees were fired during the bank's investigation, with all but one being of Chinese or Chinese American background. The legal filing states that TD did not conduct similar investigations into flagged transactions involving employees who weren't Chinese or Chinese American.
The former employees argue that TD Bank leveraged their ethnic background to build trust within the Chinese community and grow its business, then punished them for crimes committed by other Chinese individuals they didn't know. According to the lawsuit, none of the terminated employees had direct involvement with suspicious activities such as handling large cash deposits or interacting with international drug traffickers.
Background of TD's Money Laundering Troubles
This legal action comes after TD Bank faced significant regulatory consequences for AML failures. In October 2024, the bank was fined approximately US$3.1 billion by the U.S. Department of Justice and other regulators for inadequate money laundering monitoring. Regulators also ordered TD to cap the expansion of its U.S. retail banking operations.
An investigation by U.S. authorities concluded that networks of Chinese money brokers working with Mexican drug cartels had laundered millions of dollars in illegal proceeds through TD Bank branches. The lawsuit alleges that TD implemented its AML procedures in a way that created the appearance of robust compliance during government investigations while unfairly targeting specific ethnic groups.
Following the regulatory sanctions, TD Bank underwent several organizational changes, including accelerating the appointment of new chief executive Raymond Chun and strengthening its AML protocols. The bank recently reported positive quarterly results, marking a recovery after disappointing performance in late 2024. In late September, Canada's second-largest bank announced plans to cut up to $2.5 billion in expenses while seeking to boost digital sales and enhance branch productivity to return to growth.
TD Bank was not immediately available to comment on the discrimination allegations. The case continues to develop as both sides prepare their legal arguments.
