TD Bank is changing its anti-money laundering processes

Toronto-Dominion Bank (TD Bank) has reportedly laid off more than a dozen employees and begun a review of its processes as part of an effort to correct past lapses in its anti-money laundering (AML) program.

As TD faces regulatory scrutiny and legal challenges, it has launched a comprehensive overhaul of its anti-money laundering practices, The Wall Street Journal (WSJ) reported Thursday (May 23).

The bank faced serious challenges when problems with its operation arose AML program were exposed, leading to investigations According to the report, by US regulators and the Department of Justice. In response, the bank began a thorough review of its program and introduced changes to increase its effectiveness.

President and CEO of TD Bharat Masrani As we read in the report, the seriousness of the situation and the actions taken by the bank on Thursday during the announcement of the bank’s quarterly results were emphasized.

The report shows that the bank dismissed several people. Some employees faced criminal charges and others were disciplined for minor violations.

To address the shortcomings in his AML programAccording to the report, TD has strengthened its leadership position in this field. The bank acquired the best talents with experience in transforming and running anti-money laundering programs in the largest banks. These people have technical knowledge and experience in law enforcement.

The report shows that TD is the subject of multiple anti-money laundering investigations in the US and has allocated $450 million to resolve one of these investigations. Additionally, Canada’s banking regulator fined TD for failing to file suspicious activity reports and failing to file money laundering and terrorism risk documentation.

According to the report, the financial impact of these fines took a toll on TD’s profits, which was reflected in the latest quarterly results. In a conference call with analysts, Masrani expressed his commitment to resolving the investigation immediately. TD is working closely with authorities, providing extensive documentation and internal videos related to the case.

The report shows that TD has invested C$500 million (approximately $365 million) in its AML program. The bank has made measurable progress by introducing new technologies and improving warning systems, adapting them to specific areas of operation and branches.