TD Bank Takes Proactive Steps to Enhance Anti-Money Laundering Program
In the wake of a historic settlement with US regulators, TD Bank is moving swiftly to strengthen its anti-money laundering (AML) program and risk controls. The lender, which pleaded guilty to violating federal law and agreed to pay over $3 billion in penalties, is taking concrete steps to prevent similar lapses in the future.
A New Era of Compliance
To ensure accountability, TD Bank is in the process of appointing an independent monitor to oversee its operations and report to regulators. This third-party expert will track the bank’s progress in addressing risk and controls, providing an added layer of transparency and assurance.
Reassuring Employees
In a recent town hall meeting, US CEO Leo Salom addressed employee concerns, emphasizing that the bank has sufficient resources to meet its obligations. Salom stressed that enhancing the AML program and risk controls is the top priority, and that the bank has dedicated substantial capital, liquidity, and leadership to achieving this goal.
Key Appointments and Investments
TD Bank has made significant investments in its AML program, allocating $500 million this year to tighten controls and prevent future lapses. The lender has also hired several key executives, including Michelle Myers as global chief auditor, Herbert Mazariegos as head of global AML, and Erin Morrow as Chief Compliance Officer.
Training and Development
To empower staff, TD Bank is focusing on comprehensive training programs, using real-life examples and simulations to help employees identify red flags and prevent money laundering. By investing in its people, the bank aims to create a culture of compliance and accountability.
Regulatory Oversight
As part of the settlement, US regulators imposed a rare asset cap on TD Bank, limiting its growth, and required independent monitoring for four years. The bank is also prohibited from opening new branches or entering new markets without approval. These measures ensure that TD Bank remains committed to rectifying its AML program and meeting its regulatory obligations.
Leave a Reply