Leadership change comes amid continuing US regulatory woes
Bharat Masrani is retiring as chief executive officer of TD Bank, handing over the reins to Canadian banking unit chief Ray Chun as the outcome of a US investigation into the bank’s anti-money laundering protocols looms into view.
The bank said in a press release on Thursday morning that Masrani will step aside in April, while Riaz Ahmed – who leads TD Securities, its capital markets unit – is set to retire in January.
TD is likely facing heavy fines as a result of regulatory scrutiny south of the border. Authorities are investigating allegations that the bank was used by Chinese drug traffickers to launder hundreds of millions of dollars between 2016 and 2021, with an individual employee accused of accepting a bribe to facilitate laundering.
Masrani said in a statement that he accepted the blame for those controversies. “The anti-money laundering challenges we face took place on my watch as CEO and I take full responsibility,” he said on Thursday.
He said he would “continue to advance and direct the critical remediation program required to meet our obligations and responsibilities and strengthen our risk and control foundation.”
Speculation grew about a possible leadership change after TD reported a third-quarter loss in August, putting aside $2.6 billion for expected fines by regulators in the US.
Chun, Masrani’s successor, is a 32-year TD veteran who has served in roles including president of TD Direct Investing, chief executive officer at TD Insurance, head of wealth management and insurance, and head of Canadian personal banking.
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