Monica Kowal Resigns as TD Bank's Compliance Officer Amidst AML Inquiry

TD Bank's chief compliance officer, Monica Kowal, has left the bank amidst U.S. investigations into its anti-money laundering controls. Kowal had been in the role for less than a year. Deputy chief compliance officer Erin Morrow will replace her. TD Bank has invested $365 million in remediation efforts and faced a $615 million charge in its latest quarter for these investigations.

TD Bank, one of Canada's leading financial institutions, has appointed Erin Morrow as its new chief compliance officer (CCO), effective June 28, 2024 [1]. Morrow, who previously served as the deputy CCO, takes over from Monica Kowal, who left the bank in early July [1]. Ajai Bambawale, TD Bank's chief risk officer, expressed confidence in Morrow's ability to lead the bank's compliance efforts, highlighting her extensive experience in complex organizations and her significant impact within the compliance organization [1].

TD Bank is currently under investigation by the US Department of Justice, bank regulators, and the Treasury Department over allegations of failing to detect money laundering and other financial crimes at several US branches [1]. The bank has acknowledged these investigations and is reportedly undergoing a "comprehensive overhaul" of its anti-money laundering program [1]. Analysts have estimated that the total fines could be in the billions of dollars [1].

This is not the first time TD Bank has faced scrutiny over its anti-money laundering controls. In 2023, the bank paid a fine of $615 million to resolve allegations related to its US operations [2]. The investigations have raised concerns about the effectiveness of the bank's anti-money laundering measures and its ability to detect and prevent financial crimes.

TD Bank has made significant investments to strengthen its compliance and risk management frameworks. In addition to the $365 million remediation efforts mentioned in the internal memo [1], the bank has also reportedly been investing in technology and hiring additional staff to enhance its capabilities [1].

Erin Morrow's appointment comes at a critical time for TD Bank as it navigates these investigations and works to enhance its compliance and risk management capabilities. Morrow's experience in compliance, audit, and risk management, as well as her experience working in complex organizations with a global footprint, will undoubtedly be assets in this role [1].

References:

[1] Bloomberg. (2024, July 5). TD Names New Chief Compliance Officer Amid Laundering Probes. https://www.bloomberg.com/news/articles/2024-07-05/td-names-new-chief-compliance-officer-amid-laundering-probes
[2] Investing.com. (2024, March 29). TDS Chief Compliance Officer Departs Amid US Anti-Money Laundering Probe. https://www.investing.com/news/stock-market-news/tds-chief-compliance-officer-departs-amid-us-antimoney-laundering-probe-3509415