TD Bank has appointed Guidepost Solutions as the compliance monitor for its anti-money laundering program following regulatory actions taken against the lender by U.S. authorities last year. The monitoring will focus on TD's U.S. operations as part of a multi-year effort to address anti-money laundering issues and enhance controls. Chief Financial Officer Kelvin Tran informed Reuters of this development, stating that the costs for the monitoring will be covered by a $500 million fund designated for compliance work.
Tran emphasized that "AML remediation is our top priority at TD, and we're making steady progress."
Guidepost Solutions, a U.S.-based company with expertise in investigations, monitoring, and compliance, will oversee TD's compliance initiatives. The firm, which comprises over 250 individuals, including former federal prosecutors and intelligence officers, was selected for its specialized capabilities.
Last October, TD became the largest bank in U.S. history to plead guilty to violating federal anti-money laundering laws and agreed to pay over $3 billion in penalties. In response, the U.S. Department of Justice and Financial Crimes Enforcement Network directed TD to engage a monitor to evaluate its operations, track progress on risk management and controls, and provide reports to regulators.
Regulators cited instances where TD disregarded warning signs from high-risk customers, allowing illicit activities to thrive. The bank facilitated transactions exceeding $650 million for money laundering purposes, including transactions related to the sale of fentanyl and other illicit drugs. Additionally, TD employees accepted bribes from criminal organizations.
Subsequent to these events, TD announced the departure of CEO Bharat Masrani, who led its U.S. unit, along with the resignation of global AML officer Herb Mazariegos.