TD Bank Chair Calls Money Laundering Scandal the Institution’s "Darkest Day" as Leadership Faces Shareholders

TD Bank’s chair Alan MacGibbon described the bank’s admission of anti-money laundering failures as its “darkest day” during a tense annual general meeting on Thursday, where leadership addressed shareholder concerns for the first time since the October guilty plea to conspiracy to commit money laundering.

MacGibbon, along with newly appointed CEO Raymond Chun, responded to a series of pointed questions from investors at the AGM, which took place months after the bank entered into public consent agreements and agreed to pay over US$3 billion in penalties imposed by U.S. authorities. The fallout from the scandal has rocked TD’s reputation and prompted a sweeping internal reform effort.

“The settlements were extraordinarily painful,” MacGibbon said during the meeting. “The Oct. 10 public consent agreements was the darkest day that we could have imagined it to be, and I apologize to all investors for how difficult this was and the consequences of the actions.”

TD is now working to repair its internal systems and restore investor trust. The bank announced it is replacing senior leaders and revising its risk management framework to improve compliance. When questioned about how the lapses had escaped oversight and what steps are being taken to avoid a recurrence, Chun emphasized that TD is pursuing a broad cultural transformation within the organization.

“It is about changing our culture,” Chun explained. “A culture of accountability and a culture of curiosity… to ask why and be more curious to all these issues.”

MacGibbon echoed that sentiment, stating that senior leadership is learning how to better escalate concerns and create stronger mechanisms for organizational accountability.

Among the U.S. sanctions, regulators imposed an asset growth cap on TD’s American retail operations. In response, TD has initiated a strategic shift focused on expansion in the Canadian market, which generates more than 75 percent of its profits. The bank has recently introduced an online mortgage platform and added specialists to support clients with home buying and retirement planning. “Those businesses have tremendous momentum,” Chun noted during the AGM.

The AGM also addressed changes in governance following mounting investor pressure. Both MacGibbon and former CEO Bharat Masrani will exit their roles earlier than planned. Additionally, five board members stepped down on Thursday, including individuals who served on compliance and risk oversight committees.

In their place, shareholders approved four new directors: Paul Wirth and Ana Arsov, both of whom bring deep experience in risk and compliance from U.S. banking institutions; Elio Luongo and Nathalie Palladitcheff, who contribute financial and investment expertise from the Canadian sector. A fifth director, Frank Pearn—previously global chief compliance officer at JPMorgan Chase—is set to join the board in August.

MacGibbon was re-elected as chair, though with a slim 57.7 percent of shareholder support. He stated that he will step down once a successor is appointed.

Despite some vocal concern among investors, shareholders voted down all external proposals, including motions calling for enhanced oversight of artificial intelligence, reporting on language diversity, and further leadership changes.

By fLEXI tEAM