TD Bank Says Guidepost Solutions Will Oversee AML Compliance Remediation Efforts

TD Bank said Thursday (Feb. 27) that U.S. authorities selected consulting firm Guidepost Solutions as the independent monitor to oversee the bank’s remediation efforts.

Leo Salom, TD Bank’s U.S. head, said during the bank’s earnings call that the Justice Department and the Treasury Department’s Financial Crimes Enforcement Network (FinCEN) jointly selected the monitor, The Wall Street Journal reported Thursday.

The bank agreed to retain a third-party monitor to supervise its remediation of its anti-money laundering (AML) compliance program as part of a settlement that was announced in October, according to the report.

“There is still much to do, and this is a multiyear process, but we remain unwavering in our commitment to build the AML program we need, and we will continue to provide updates on a quarterly basis,” Salom said during Thursday’s call, per the report.

Reuters also reported Thursday that Guidepost Solutions had been selected as the monitor, citing an interview with TD Bank Chief Financial Officer Kelvin Tran.

The compliance program will take multiple years and the monitors’ costs will be paid from the $500 million that TD Bank has set aside for the program, according to the report.

“AML remediation is our top priority at TD, and we’re making steady progress,” Tran said, per the report.

When announcing the settlements in October, TD Bank Group and U.S. regulators and authorities said the bank and some of its U.S. subsidiaries consented to orders and entered into plea agreements related to previously disclosed investigations of its Bank Secrecy Act (BSA) and AML compliance programs.

In a presentation released in December in conjunction with its earnings call, TD Bank Group said it had overhauled its U.S. BSA/AML program leadership and talent, strengthened its oversight structure and accountability, introduced new standards for policy and risk assessment, enhanced its process and control, and deployed new data-driven technology solutions and the first phases of an enhanced transaction monitoring platform.

The bank said it expected to have most of the management remediation actions implemented by the end of 2025 and planned additional management actions in 2026.

It was reported Feb. 10 that TD Bank was selling its 10.1% stake in investment firm Charles Schwab to stem losses after the money laundering-related scandal.