TD Bank prepares to hire compliance monitors as US CEO reassures staff
Toronto-Dominion (TD) Bank is taking significant steps to address its compliance shortcomings after becoming the largest U.S. bank in history to plead guilty to violations of federal anti-money laundering (AML) laws. The bank, which agreed to a $3 billion settlement in September, is now working to implement government-ordered measures, including hiring independent monitors. Regulators criticized TD for enabling over $400 million in illicit transactions tied to drug traffickers and for failing to act on red flags. The fallout has also included a rare asset cap, restricting the bank’s expansion without regulatory approval.
In response, TD has made strengthening its AML program a top priority. The bank has invested $500 million this year to enhance risk controls and has brought in compliance experts, such as Herbert Mazariegos from Bank of Montreal and Erin Morrow from Citigroup, to lead its efforts. Staff training programs now include real-life case studies to help employees recognize suspicious activities. U.S. CEO Leo Salom has assured employees that TD has sufficient capital and leadership to meet regulatory requirements and improve its compliance culture.
These reforms come alongside leadership changes, including the appointment of Michelle Myers as global chief auditor. TD Bank aims to rebuild trust and prevent further penalties by complying with a four-year independent monitoring mandate. The institution faces a long road ahead as it works to overcome reputational damage and operational challenges posed by its past missteps.
