TD Bank's chief compliance officer departs amid laundering probe

TD Bank’s chief compliance officer departs amid laundering probe | Insurance Business Canada

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TD Bank’s chief compliance officer departs amid laundering probe

A replacement has been named

Insurance News

By
Jonalyn Cueto

Toronto-Dominion Bank’s chief compliance officer, Monica Kowal, has left the company. TD has appointed Erin Morrow, the deputy chief compliance officer, as Kowal’s successor. Morrow brings over 20 years of experience in compliance, audit, and risk management.

Kowal’s departure comes as Canada’s second-largest bank works to address deficiencies in its anti-money laundering (AML) program, amidst investigations by US regulators and law enforcement.

Kowal’s departure was announced in an internal memo dated June 28, according to The Global and Mail. Ajai Bambawale, TD’s chief risk officer, acknowledged her significant contributions to the bank’s regulatory compliance strategies.

The memo did not provide a reason for Kowal’s departure.

Morrow joined TD in January from Citibank, where she spent over a decade in compliance and auditing roles. Prior to Citibank, she worked at Grant Thornton LLP as principal of business advisory services.

Kowal joined TD over six years ago and was appointed senior vice president and chief compliance officer in November 2022. Before her tenure at TD, Kowal served at the Ontario Securities Commission, including a stint as vice chair from 2014 to 2017.

Kowal had been helping oversee the bank’s efforts to fix its regulatory compliance management (RCM) program. This effort followed an investigation by the Office of the Superintendent of Financial Institutions (OSFI), Canada’s banking regulator, which ordered TD to address shortcomings in its RCM framework.

In May, The Globe reported that OSFI identified gaps in TD’s RCM program during a recent assessment. The RCM framework is essential for managing the various laws and regulations governing a bank’s operations in Canada, the US, and other countries.

Kowal worked on the RCM remediation program with two vice presidents of compliance, Denise Morris and Emily Jelich. Jelich retired from TD at the end of June.

The Globe noted that TD Bank has been under prolonged scrutiny by US regulators and the Department of Justice for weaknesses in its AML procedures. Analysts estimate potential penalties could reach up to US$4 billion. There are also concerns that US regulators might impose restrictions on TD’s ability to expand in its key growth market.

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