TD Bank has appointed Guidepost Solutions as the independent monitor to oversee its remediation efforts related to its anti-money laundering (AML) compliance program. The decision was announced during the bank’s earnings call on Thursday. The appointment is part of a settlement reached in October, where TD Bank agreed to retain a third-party monitor to supervise the remediation of its AML compliance program.
The Justice Department and the Financial Crimes Enforcement Network (FinCEN) jointly selected Guidepost Solutions for this role. “There is still much to do, and this is a multiyear process, but we remain unwavering in our commitment to the AML program we need, and we will continue to provide updates on a quarterly basis,” said the bank’s representative during the call. TD Bank Chief Financial Officer Kelvin Tran confirmed that the compliance program will span multiple years, with the monitor’s costs being paid from the $500 million that TD Bank has set aside for the program.
Guidepost’s oversight of AML efforts
“AML remediation is our top priority at TD, and we’re making steady progress,” Tran stated. The settlements announced in October revealed that TD Bank Group and some U.S. subsidiaries had entered into plea agreements related to investigations of its Bank Secrecy Act (BSA) and AML compliance programs.
In December, TD Bank Group outlined several initiatives to strengthen its U.S. BSA/AML program, including overhauling program leadership and talent, enhancing its oversight structure and accountability, introducing new standards for policy and risk assessment, improving processes and controls, and deploying new data-driven technology solutions. The bank also began implementing the first phases of an enhanced transaction monitoring platform. TD Bank expects to complete most of the management remediation actions by the end of 2025, with additional management actions planned for 2026.
In a separate development, it was reported that TD Bank is selling its 10.1% stake in investment firm Charles Schwab to mitigate losses following the money laundering-related scandal. The bank remains committed to resolving its compliance issues and enhancing its AML program to meet regulatory standards.