TD's top anti-money laundering officer exits after a year as executive shakeup continues
Toronto-Dominion Bank has parted ways with its top anti-money laundering officer as it continues to make changes in its senior leadership just a few months after regulators in the United States levied sanctions against it for failing to monitor money-laundering activities at its branches.
Herb Mazariegos joined TD in late 2023 after working as the chief anti-money laundering officer at the Bank of Montreal for five years. He will be replaced by Jacqueline Sanjuas, who has been appointed as the global head of financial crime risk management, TD said on Thursday.
Mazariegos “will support a smooth transition,” the bank said in a statement.
Last week, TD sped up the appointment of its new chief executive and made sweeping changes to its board.
Raymond Chun, currently chief operating officer, will succeed Bharat Masrani as CEO on Feb. 1 instead of April 10 as previously planned, chair Alan MacGibbon will step down by year-end and five directors will leave.
TD also said it reduced the compensation of 41 executives as a result of its failure to prevent money laundering and the resulting sanctions. It said Masrani did not receive any “cash incentive award or equity compensation” for 2024, resulting in his compensation being reduced by 89 per cent to $1.5 million from $13.2 million.
TD was fined about US$3.1 billion and ordered to cap the expansion of its U.S. retail banking business in October by the U.S. Department of Justice and other regulators for failing to monitor money laundering activities at its branches. The fine was expected — TD had kept aside the money beforehand — but the cap took some by surprise.
In December, TD suspended its medium-term financial targets and decided to conduct a review of its strategies, which
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