The Chief Risk Officer of TD Bank Group has openly acknowledged "procedural weaknesses" within the institution's U.S. anti-money laundering (AML) programme, which have allowed malicious actors to exploit its network. Ajai Bambawale, in response to an analyst's inquiry during the bank's 23 May conference call discussing second-quarter earnings, admitted to the necessity of reinforcing the bank's AML programme.
Bambawale emphasised the bank's commitment to excellence in managing risks but conceded occasional lapses, taking ownership of the identified deficiencies in the AML programme. Specifically pointing to shortcomings in the U.S. AML programme, he expressed disappointment in instances where colleagues failed to adhere to the bank's ethical code. Bambawale concluded by affirming the bank's accountability, stating, "We're not denying it. We're owning it."
In April, TD Bank disclosed a provision of USD 450 million to settle potential charges from the U.S. Department of Justice (DOJ) and other agencies related to AML program deficiencies. Additionally, on 2 May, the Financial Transactions and Reports Analysis Centre of Canada imposed a record fine of nearly 9.2 million Canadian dollars (then-U.S. USD 6.7 million) on TD Bank for non-compliance with AML regulations.
During the conference call, Bharat Masrani, President and Chief Executive of TD Bank Group, assured stakeholders of the bank's proactive efforts to address AML programme issues. He affirmed that the bank is actively working to rectify the situation.
In a press release accompanying the announcement of its second-quarter results, the bank underscored its cooperation with U.S. regulators and authorities, emphasising its earnest efforts to bring ongoing investigations to a resolution. The release also highlighted the comprehensive overhaul of TD's U.S. AML programme as a priority, aimed at bolstering the bank's global AML framework.
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