TD Optimistic Amidst Anti-Money Laundering Probe
Toronto-Dominion Bank (TD), one of Canada's largest financial institutions, remains optimistic and views the ongoing anti-money laundering probe by U.S. authorities as "manageable." This statement comes from Leo Salom, the CEO of TD Bank's U.S. unit, as he addressed concerns during a recent Barclays conference.
In August, TD revealed its collaboration with U.S. authorities, including the U.S. Department of Justice, regarding an investigation into its anti-money laundering compliance program. The bank anticipated the imposition of fines and non-monetary penalties as a result of this probe. Importantly, Salom clarified that this disclosure was unrelated to the bank's earlier decision to terminate a $13.4 billion deal to acquire American regional lender First Horizon in May.
Salom explained that the decision to call off the First Horizon deal stemmed from uncertainties surrounding regulatory approvals, indicating that TD remains committed to rigorous regulatory compliance.
Addressing the anti-money laundering inquiry, Salom underscored the bank's seriousness in addressing the matter, stating, "We take those items (inquiry) very seriously. And we employ whatever resources are required to be able to deal with that issue." He further expressed the bank's belief that this investigation is a manageable issue that will eventually be resolved.
Despite the ongoing probe, TD has refrained from disclosing the potential size of any fines associated with the matter. Nevertheless, investors have expressed confidence in the bank's robust capital position, particularly following the termination of the First Horizon deal.
TD's outlook underscores the institution's commitment to regulatory compliance and its confidence in resolving the anti-money laundering inquiry in due course. As the investigation unfolds, TD's ability to manage and navigate these challenges will be closely watched by stakeholders, including investors and industry observers.