TORONTO (Reuters) – TD Bank's chief compliance officer has left the bank, according to an internal memo, as the Canadian lender faces U.S. regulators and the Justice Department in an investigation related to its anti-money laundering program.
Monica Kowal, who joined the bank in 2017, left the company this week and will be replaced by deputy chief compliance officer Erin Morrow, who will report to chief risk officer Ajai Bambawale, according to the memo sent in late June, seen by Reuters.
Bambawale did not mention in the memo the reason for Kowal's departure. Chief Executive Officer Bharat Masrani had previously said the bank had taken action against the employees responsible, including firing them.
TD declined to comment on Kowal's departure. Kowal was not immediately available for comment.
Morrow joined TD in January after spending more than a decade at U.S. bank Citi. TD also hired Marcy Forman and Jacqueline Sanjuas from Citi and its global head of anti-money laundering, Herbert Mazariegos, from BMO, to refresh the team.
The bank said it has invested more than $500 million in training programs, adding hundreds of anti-money laundering professionals and hiring executives to lead its regulatory program after Masrani said the bank's anti-money laundering program was not sufficient and did not effectively monitor, detect, report or respond. It is “unacceptable,” he said in May.
The bank has also taken an initial provision of $450 million and has said it expects additional monetary penalties. Fines could reach $4 billion, according to analysts.
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