By Nivedita Balu
TORONTO (Reuters) -TD Financial institution mentioned on Thursday Chief International Anti-Cash Laundering Officer Herbert Mazariegos is stepping down instantly, because the financial institution takes remediation actions after it was fined by U.S. regulators for compliance failures.
Mazariegos joined TD in November 2023 from Financial institution of Montreal, the place he served because the chief anti-money laundering officer for over 4 years. He was employed as a part of TD’s push to revamp its threat and compliance crew.
Mazariegos, employed whereas outgoing CEO Bharat Masrani was in cost, will likely be changed by Jacqueline Sanjuas, the pinnacle of U.S. monetary crime threat administration at TD, the financial institution mentioned.
Toronto-based AML business professional Sean Parker mentioned TD cushioned the blow by hiring Sanjuas, who joined the financial institution in January 2024 and comes with twenty years of expertise in compliance and threat administration.
Stephen Joyce, vice chairman of economic crime threat administration transformation supply and enablement, will take the function of interim head of economic crime threat administration for TD’s Canadian and worldwide operations, excluding the U.S.
Joyce will report back to Sanjuas.
“I’m assured that these adjustments will place Monetary Crime Danger Administration for fulfillment,” Chief Danger Officer Ajai Bambawale mentioned in a memo to workers on Thursday, thanking Mazariegos for his “contributions … throughout a difficult time.”
Bambawale mentioned within the memo Mazariegos’ departure was based mostly on mutual settlement.
TD faces an asset cap and a $3-billion penalty by U.S. regulators following a probe by U.S. companies into the lender’s anti-money laundering program that resulted in a uncommon quarterly loss and compelled it to droop its forecast.
The lender bumped into issues with U.S. regulators for failures in its threat and compliance program that supplied floor for a number of illicit exercise, from fentanyl and narcotics trafficking to terrorist financing.
TD mentioned final week that Masrani, who has taken full accountability for the anti-money laundering failures, is stepping down in February, greater than two months prior to the beforehand deliberate date for his retirement.
(Reporting by Nivedita Balu in Toronto, Enhancing by Caroline Stauffer and Rod Nickel)
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