TD Bank Appoints Guidepost Solutions as AML Compliance Monitor Following $3 Billion Penalty

Canadian lender TD Bank has appointed Guidepost Solutions as the independent compliance monitor for its anti-money laundering (AML) program, following the $3 billion in penalties imposed by U.S. regulators last year.

Guidepost Solutions will oversee TD’s business operations in the United States as part of a multi-year initiative aimed at addressing the bank’s AML deficiencies and strengthening its compliance controls. Chief Financial Officer Kelvin Tran confirmed the appointment in an interview, stating that the costs associated with the monitor will be covered by a $500 million fund that TD has set aside specifically for compliance efforts.

“AML remediation is our top priority at TD, and we’re making steady progress,” Tran said.

Guidepost Solutions, a U.S.-based firm with a team of over 250 professionals, includes former federal prosecutors and intelligence officers, according to its website. The company specializes in compliance, investigations, and monitoring.

TD became the largest bank in U.S. history to plead guilty to violating federal anti-money laundering laws and agreed to pay more than $3 billion in penalties to resolve the charges in October. The U.S. Department of Justice and the Financial Crimes Enforcement Network (FinCEN) mandated that TD appoint a monitor, typically an independent consultant or law firm, to observe the bank’s operations, assess its risk and control improvements, and report directly to regulators.

Regulators accused TD of disregarding warning signs from high-risk customers and fostering an environment that made it easy for illicit actors to operate. Officials stated that TD facilitated more than $650 million in transactions that were used to launder money for individuals involved in the sale of fentanyl and other dangerous drugs. Additionally, TD employees were found to have accepted bribes from criminal organizations.

In the wake of the scandal, TD has undergone significant leadership changes. The bank announced the departure of CEO Bharat Masrani, who had previously led its U.S. division before taking over as chief executive. TD’s global AML officer, Herb Mazariegos, also left the company, and the bank has laid off several other executives while reducing salaries across the organization.

By fLEXI tEAM