Exclusive-TD Bank appoints compliance monitor after $3 billion US penalty for money laundering
By Nivedita Balu
TORONTO (Reuters) - Canadian lender TD Bank appointed Guidepost Solutions as the compliance monitor for its anti-money laundering program after U.S. regulators hit the lender with $3 billion in penalties last year.
Guidepost Solutions will monitor TD's business in the United States as part of a multi-year program to fix TD's anti-money laundering problems and strengthen its controls, Chief Financial Officer Kelvin Tran told Reuters in an interview.
The costs for the monitor will be paid from a $500 million pot that TD has earmarked for compliance work. The details on the monitor are being reported by Reuters for the first time.
"AML remediation is our top priority at TD, and we're making steady progress," Tran said.
Guidepost Solutions is a U.S.-based company with more than 250 people, including former federal prosecutors and intelligence officers, according to its website. It specializes in investigations, monitoring and compliance.
TD became the largest bank in U.S. history to plead guilty to violating a federal law aimed at preventing money laundering, and agreed to pay more than $3 billion in penalties to resolve the charges in October.
The U.S. Department of Justice and Financial Crimes Enforcement Network (FinCEN) ordered TD at the time to appoint a monitor, typically a third-party consultant or law firm, to observe its operations, track its progress on risk and controls, and report to regulators.
Regulators said TD ignored red flags from high-risk customers and created a "convenient" environment for bad actors to exploit. It facilitated more than $650 million in transactions to launder funds on behalf of people selling fentanyl and other deadly drugs, while its employees took bribes from criminal gangs, the officials said.
TD has since announced the departure of CEO Bharat Masrani, who also led its U.S. unit before taking helm. Its global AML officer Herb Mazariegos also left, and the bank has laid off several other executives and cut salaries.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Yahoo
11 minutes ago
- Yahoo
Kingsway Financial Services Inc. (KFS): A Bull Case Theory
We came across a bullish thesis on Kingsway Financial Services Inc. (KFS) on Andvsri's Substack. In this article, we will summarize the bulls' thesis on KFS. Kingsway Financial Services Inc. (KFS)'s share was trading at $12.86 as of 30th May. A professional insurance agent at work in a modern office, representing the company's independent agents. Kingsway Financial Services (KFS) has undergone a significant transformation from a troubled Canadian insurance company into a unique, publicly traded search fund platform. After years of poor management and failed investments, activist investor Joseph Stilwell took control and installed Larry Swets as CEO to utilize the company's substantial net operating losses (NOLs). However, Swets' tenure saw limited success until the 2016 acquisition of Argo Management Group and its founder, J.T. Fitzgerald. In 2018, Fitzgerald became CEO and began a comprehensive cleanup, exiting legacy assets, selling the insurance business, reincorporating in the U.S., and dramatically reducing debt. Under Fitzgerald, Kingsway launched the Kingsway Search Accelerator (KSX) to institutionalize the search fund model. Search funds—vehicles where entrepreneurs acquire and operate small businesses—have historically generated strong returns, and Kingsway's platform improves on the model with superior capital access, operational infrastructure, and a selective pipeline. Notably, the company's PWSC exit yielded a 10x return, and current portfolio companies are demonstrating strong performance. Recent catalysts include the addition of respected investors David Patinkin and Josh Horowitz to the board, strategic leadership changes in the warranty segment, and the acquisition of Bud's Plumbing, led by Rob Casper, a seasoned aggregator CEO. These moves suggest a path toward becoming a self-funded, pure-play search fund company, potentially unlocking greater valuation multiples. With substantial NOLs expiring by 2029, the urgency to monetize or streamline operations further supports the bullish outlook. Recent share price appreciation reflects growing investor recognition of Kingsway's evolving business model and strategic potential. For a comprehensive analysis of another standout stock covered by the same author, we recommend reading our summary of this on Copart, Inc. (CPRT). Kingsway Financial Services Inc. (KFS) is not on our list of the 30 Most Popular Stocks Among Hedge Funds. As per our database, 4 hedge fund portfolios held KFS at the end of the first quarter which was 5 in the previous quarter. While we acknowledge the potential of KFS as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an extremely cheap AI stock that is also a major beneficiary of Trump tariffs and onshoring, see our free report on the best short-term AI stock. READ NEXT: 8 Best Wide Moat Stocks to Buy Now and 30 Most Important AI Stocks According to BlackRock. Disclosure: None. This article was originally published at Insider Monkey. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
New York Post
11 minutes ago
- New York Post
Sean ‘Diddy' Combs and his victim hired porn stars for ‘freak-offs,' flew them cross-country, she says — and reveals how much they got paid
Sean 'Diddy' Combs and his one-time influencer girlfriend hired two porn stars for numerous 'hotel night' sex sessions, according to testimony. REUTERS Jane — Combs' girlfriend until his 2024 arrest — said that starting around late 2021 and early 2022, she started to try choosing the men she slept with during her and the Bad Boy Records founder's 'hotel nights,' aka 'freak-offs.' Jane reached out to the men on separate occasions after watching their adult films with the 'I'll Be Missing You' rapper, she told the jury. REUTERS She booked flights for one of the men, whose screen name is 'Sly,' from his home in Atlanta to Los Angeles or New York for 'hotel nights,' for which she paid him around $2,000 to $4,000, Jane testified. Later, Jane started hiring another porn star, 'Antoine,' for 'hotel nights,' she said.
Yahoo
12 minutes ago
- Yahoo
BMO hires BofA vet Levine
This story was originally published on Banking Dive. To receive daily news and insights, subscribe to our free daily Banking Dive newsletter. Bank of America veteran Aron Levine will become group head and president of BMO U.S., effective July 7, the Canadian bank said Thursday. Levine's role is a new position at BMO, a bank spokesperson said. Levine left BofA in April, after spending more than three decades in various roles at the bank. Additionally, Ernie (Erminia) Johannson – who has led BMO's North American personal and business banking group since 2020 – intends to retire from BMO in early 2026, the bank said. She will become a senior adviser at the company. During Levine's nearly 32 years at Bank of America, he led units within consumer banking, global wealth and investment management, and commercial real estate. Most recently, he was president of preferred banking at the Charlotte, North Carolina-based lender. With his new role, Levine will join the executive committee of BMO Financial Group and the U.S. management committee. He'll be based at BMO's U.S. headquarters in Chicago, leading personal and business banking, commercial banking and wealth management businesses in the U.S. He'll report to BMO CEO Darryl White and BMO U.S. CEO Darrel Hackett. Levine's appointment was one of a number of changes disclosed Thursday amid a broader executive reshuffling, along with Johannson's retirement. Johannson has been at Toronto-based BMO since 2012. Prior to that, she served at Fidelity Investments and spent 13 years at CIBC, according to her LinkedIn profile. Additionally, Nadim Hirji will be appointed vice chair of BMO's commercial banking segment. Hirji has led BMO's North American commercial banking business since March 2023, the bank said. 'Today's announcement reflects BMO's deep strength in talent development and planning, and our ability to attract exceptional leaders to serve our clients,' White said in the news release. 'This next step supports the rebuilding of our ROE, including optimizing our U.S. structure by combining our U.S. Personal & Business Banking, Commercial Banking, and Wealth Management businesses to deliver for our clients,' White said. 'These experienced leaders bring the capabilities that will help us accelerate our performance through greater collaboration, integration of AI, data and cloud computing for faster, more innovative work, and personalized client advice and service.' The reshuffle detailed Thursday is aimed at supporting the bank's growth goals across Canada and certain U.S. markets and bolstering client service, BMO said. Sharon Haward-Laird, BMO's general counsel, will become group head of Canadian commercial banking and North American shared services. Mat Mehrotra, chief digital officer and head of Canadian products, will become group head of Canadian personal and business banking. Haward-Laird, who joined BMO in 2000, and Mehrotra, who's been at the bank since 2010, have also been named co-heads of Canadian personal and commercial banking. Haward-Laird will remain on the lender's executive committee, and Mehrotra will join it. Paul Noble will become general counsel and group head of legal and regulatory compliance and join the bank's executive committee. Noble has been at the bank since 2003 and serves as corporate secretary in the enterprise legal department. Mona Malone, the bank's chief human resources officer, will also take the chief administrative officer title, and remain on the bank's executive committee; she's been at BMO since 1996. Deland Kamanga will remain group head of wealth management and on the executive committee, but has been tapped as the committee's sponsor for initiatives designed to deepen and expand client relationships across BMO's businesses. All of the changes take effect July 7. BMO is the seventh-largest bank in North America by assets, with $1.4 trillion, and serves 13 million customers across Canada, the U.S. and certain international markets. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
