CEO of TD to Retire in the Coming Year, Acknowledges Accountability for Money Laundering Oversights
TD Bank Group, currently entangled in a money laundering scandal in the U.S., has announced that chief executive Bharat Masrani is set to retire next year.
After 38 years at the bank and more than a decade as CEO, Masrani will officially retire on April 10, 2025, at the bank’s upcoming annual meeting of shareholders.
Expressing accountability, Masrani stated, “The anti-money laundering challenges we face occurred under my leadership as CEO, and I take full responsibility.”
He added, “In the following months, I will continue to lead and oversee the necessary remediation program to fulfill our obligations, strengthen our risk, and enhance our control framework.”
The bank has appointed Raymond Chun, TD’s group head of Canadian personal banking, as Masrani’s successor.
As part of the transition plan, Chun will assume the role of chief operating officer on Nov. 1 before stepping into the CEO position when Masrani retires next year.
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Chun began his career at TD through the management training program in 1992 and has held increasingly senior positions over the past 32 years.
TD has incurred significant charges related to the ongoing U.S. investigations into the inadequacies of its anti-money laundering program.
The investigation has cast a shadow over the bank, contributing to the failure of its proposed acquisition of U.S. bank First Horizon Corp. in May of last year.
The bank has disclosed that the anticipated resolution of the U.S. investigations will involve both financial penalties and non-financial repercussions.
Additionally, TD announced on Thursday that Riaz Ahmed, group head of wholesale banking and president and CEO of TD Securities, will retire at the end of January 2025.
Further changes in the executive leadership, effective November 1, include the promotion of Sona Mehta, currently executive vice-president of various banking divisions, to the role of group head of Canadian personal banking.
Tim Wiggan, group head of wealth management and insurance, will transition to the position of group head of wholesale banking and president and CEO of TD Securities.
Paul Clark, presently executive vice-president of private wealth management and financial planning, will assume the role of senior executive vice-president of wealth management.
