But the analyst added that there is no certainty on how the regulators and U.S. Department of Justice will proceed with their investigations or what the outcomes may be. He acknowledged that the penalties could far exceed the current estimates.
Late last week, TD’s group president and chief executive officer, Bharat Masrani, addressed the media reports about the probe.
“”Criminals relentlessly target financial institutions to launder money and TD has a responsibility and an obligation to thwart their illegal activity,” he said in a statement. “I regret that there were serious instances where the Bank’s AML program fell short and did not effectively monitor, detect, report or respond. This is unacceptable and not in line with our values. As we have previously said, these matters are not in any way related to TD’s good faith dealings with our customers.”
He noted that the bank had taken steps to fix the issues including hiring experienced AML executives and professionals, implemented new widespread training programs, and heightened account monitoring and mandatory reviews through significant investment in new technology.
“Our efforts have resulted in tangible improvements, with more work ahead. We continue to cooperate closely with our regulators to accelerate our progress and meet our obligations,” said Masrani.
