TD Bank US Money Laundering Case - Deep Dive Review & Summary

By Financial Crime News

Background & Context: TD is the 2nd largest Bank in Canada, the 6th largest in North America and 10th largest in the USA, with globally 28 million customers, and total assets of US$1.52 trillion. TD employs around 90,000 people and is present in many financial centres around the world with retail businesses in Canada and the USA. RBC is the 5th largest in North America, with Scotiabank 9th and Bank of Montreal 10th. The TD Group had been led by CEO, Bharat Masrani who was appointed to the role in November 2014. Masrani spent all his professional life at TD in front facing leadership roles, in Canada and overseas. In 2003 he became Chief Risk Officer of TD Bank Group. Once TD entered the US market he became CEO of it’s US operations. In 2013 Masrani was appointed COO and CEO designate following the then CEO’s announced retirement. This followed the fine by the OCC against TD bank USA (for more see below). In 2018, Masrani was the highest-paid Big 5 Canada CEO with C$15.3 million in total compensation. In 2023, he took a pay cut due to U.S. regulatory issues and the bank's termination of its First Horizon acquisition, which saw his compensation drop to C$13.4 million ($9.93 million) in 2023. Masrani had championed TD Groups ambitious U.S. expansion strategy as it looks for growth opportunities outside of Canada. The C$13.4 billion (US$10 billion) First Horizon deal, which was announced in February 2022, if completed, would have given TD access to 12 states across the U.S. Southeast. It was called off in May 2023 when it’s US AML issues meant US would not be approving the transaction. Whilst Masrani has announced his early retirement he is still in post until a planned succession by insider Raymond Chun, a 30 year TD veteran and Head of Canadian Personal Banking can be finalised at next years AGM on 10 April, 2025 TD Bank USA, uses the moniker, “America's Most Convenient Bank”, and provides 10 million customers with a full range of retail, small business and commercial banking products and services at more than 1,100 convenient locations throughout the Northeast, Mid-Atlantic, Metro D.C., the Carolinas and Florida. In addition, TD Auto Finance, a division of TD Bank, N.A., offers vehicle financing and dealer commercial services. TD Bank and its subsidiaries also offer customised private banking and wealth management services through TD Wealth. TD Bank USA is headquartered in Cherry Hill, New Jersey. Total revenues in 2023 of C$51,8 billion (US$37.6 billion), up from C$46.1 billion (US$33.5 billion) in 2022, with costs of C$27.4 bullion (US$20 billion), up from C$24.3 billion (US$17.6 billion) in 2022 (non interest expenses) and net income or profit of C$15.1 billion (US$11 billion) down from C$15.4 billion (US$11.2 billion) in 2022. Increased costs in 2023 in terms of non intere