TD Bank Overhauls AML Leadership Amid U.S. Regulatory Penalties

TD Bank has announced the immediate resignation of Chief Global Anti-Money Laundering Officer Herbert Mazariegos, as the institution undergoes corrective measures following a U.S. compliance fine. Mazariegos will be succeeded by Jacqueline Sanjuas, with Stephen Joyce assuming interim roles for Canadian and international financial crime risk management.

In a strategic reshuffle, TD Bank declared on Thursday that Chief Global Anti-Money Laundering Officer Herbert Mazariegos will be stepping down immediately. This decision comes as part of the bank's remedial actions after incurring a fine from U.S. regulators due to compliance shortcomings.

Joining TD in November 2023, Mazariegos was recruited from Bank of Montreal as the bank sought to overhaul its risk and compliance divisions. Jacqueline Sanjuas, previously head of U.S. financial crime risk management at TD, will succeed Mazariegos. Toronto-based AML expert Sean Parker commended TD's decision, highlighting Sanjuas’ extensive experience in the sector.

Stephen Joyce has been appointed interim head of financial crime risk management for TD's Canadian and international operations, barring the U.S., and will report directly to Sanjuas. Affected by a $3-billion penalty and asset restrictions from U.S. regulators, TD’s CEO Bharat Masrani will resign earlier than planned, taking responsibility for the compliance failures.