TD Bank Group

Background

The Toronto-Dominion Bank was formed on February 1, 1955, through the merger of two institutions: the Bank of Toronto, which was incorporated in 1855, and Dominion Bank, which opened in 1871. Both banks grew and expanded their networks across Canada and internationally before combining to create one of Canada’s largest financial institutions. Following the merger, TD Bank expanded its operations throughout Canada and eventually into the United States, where it established a significant retail banking presence. ^{3  4}

As of July 2025, TD Bank reported total assets of $2.0 trillion and operated as the sixth-largest bank in North America by assets. The bank operates through four primary business segments: Canadian Personal and Commercial Banking, which includes TD Canada Trust and TD Auto Finance Canada; U.S. Retail, which includes TD Bank and TD Auto Finance U.S.; Wealth Management and Insurance, which includes TD Wealth, TD Direct Investing, and TD Insurance; and Wholesale Banking, which includes TD Securities and TD Cowen. The bank also maintains a significant online presence, with millions of customers using its digital banking platforms. ^{5  6  5}

TD Bank has approximately 28.1 million customers across North America and in key financial centers around the globe. ⁵ The bank trades under the symbol “TD” on both the Toronto Stock Exchange and the New York Stock Exchange. ^{7  5}

Money Laundering Scandal and Federal Penalties

On October 10, 2024, TD Bank pleaded guilty to multiple criminal charges, including conspiracy to violate the Bank Secrecy Act and conspiracy to commit money laundering, and agreed to pay approximately $3.09 billion in combined penalties to U.S. federal regulators and the U.S. Department of Justice. Then-U.S. Attorney General Merrick Garland announced that TD Bank was “the largest bank in U.S. history to plead guilty to Bank Secrecy Act program failures and the first U.S. bank in history to plead guilty to conspiracy to commit money laundering.” ⁸

According to federal prosecutors, TD Bank maintained inadequate anti-money laundering controls between January 2014 and October 2023, which allowed multiple criminal networks to exploit its systems. Over a six-year period, from January 2018 to April 2024, TD Bank failed to monitor $18.3 trillion in customer activity, representing 92 percent of its transaction volume and 74 percent of its transaction value. This systemic failure enabled three money-laundering networks, including operations in New Jersey and Puerto Rico, to transfer more than $670 million through TD Bank accounts. ^{8  9}

One of the most-significant schemes involved Da Ying Sze, known to bank employees as “David,” who laundered more than $470 million in narcotics proceeds through TD Bank. Federal prosecutors alleged that Sze “had attempted to launder money through numerous financial institutions, but he found that TD Bank had the most permissive policies and procedures and so chose to launder most of his funds there.” On multiple occasions, Sze deposited more than $1 million in cash in a single day, which he immediately moved out of the bank using checks and wire transfers. According to the Department of Justice, Sze allegedly bribed TD Bank employees with more than $57,000 in gift cards. ^{10  11  12  13  10}

The Hill reported, “In another scheme, five TD employees helped launder $39 million in drug proceeds to Colombia. A third money laundering network maintained accounts for at least five shell companies at TD Bank that they used to transfer nearly $120 million.” ¹³

Federal authorities alleged that TD Bank employees were aware of the bank’s vulnerabilities and even joked about them. According to then-U.S. Attorney Philip R. Sellinger, bank employees referred to TD Bank as “America’s Most Convenient Bank” as “a joke among employees to describe TD Bank being convenient for criminals.” Internal messages revealed employees acknowledging that lax controls made them an “easy target” for “the bad guys.” In one instance cited by the Justice Department, when an employee asked in an email about a suspicious transaction “How is that not money laundering?” a back-office employee responded, “oh, it 100% is.” ^{11  10  14}

Then-Deputy Treasury Secretary Wally Adeyemo stated, “The vast majority of financial institutions have partnered with FinCEN to protect the integrity of the U.S. financial system. TD Bank did the opposite.” New Jersey Monitor characterized then-Deputy Attorney General Lisa Monaco as saying that TD Bank officials “knew of their shortcomings in protecting against money laundering but failed repeatedly to act or properly fund the bank’s compliance program, even as profits rose.” ^{10  8}

The settlement included approximately $1.8 billion in penalties to the Department of Justice, over $1.3 billion in combined civil penalties to FinCEN, the Federal Reserve, and the Office of the Comptroller of the Currency (OCC), and additional requirements, including a three-year monitorship and five-year probation. ¹⁵ The OCC also imposed a $434 billion asset cap on TD Bank’s U.S. operations, preventing the bank from growing beyond its asset level as of September 30, 2024, until it remediated its anti-money laundering compliance program to regulators’ satisfaction. ¹⁵ The asset cap could be lowered further if the bank failed to meet remediation requirements, and the OCC may require TD Bank to reduce its total assets by up to seven percent if compliance improvements were not achieved within specified timelines. ^{16  15}

The federal plea agreement highlighted that TD Bank operated under a “zero expense growth paradigm” from 2014 to 2022, meaning the bank’s compliance budget was not allowed to increase year-over-year despite the bank’s profits and risk levels surging. The bank failed to make any substantial updates to its transaction-monitoring program during this period, leaving critical gaps unaddressed despite escalations raised to top management. ⁹

Leadership Transition

Raymond Chun was appointed the group president and CEO of TD Bank Group on February 1, 2025, following the retirement of Bharat Masrani. Chun was born in Seoul, South Korea, in 1969 and immigrated to Canada during his youth. He has over 30 years of banking experience, all with TD Bank. He earned a bachelor of arts from the University of Western Ontario and an MBA from Queen’s University. Chun began his career with TD in 1992 as a management associate and held numerous senior leadership roles across the bank over the following three decades, including president and CEO of TD Insurance, president of TD Direct Investing, group head for Wealth Management and TD Insurance, group head of Canadian Personal Banking, and COO of TD Bank Group immediately prior to becoming CEO. ^{17  18  19}

Until January 2025, Bharat Masrani was the group president and CEO of TD Bank Group, a position he held from November 2014 until his retirement on February 1, 2025. Masrani was born in Uganda in 1956 and fled with his family to the United Kingdom in 1972 to escape the dictatorship of Idi Amin. He joined TD Bank in 1987 as a commercial-lending trainee and held numerous senior executive roles across four countries over the following decades. He earned his bachelor’s degree with honors from York University in 1978 and his MBA from the Schulich School of Business at York University in 1979. ²⁰

Following the money-laundering scandal, Masrani announced his retirement from TD Bank in September 2024. In a statement at the time of the guilty plea, Masrani said, “This is a difficult chapter in our Bank’s history. These failures took place on my watch as CEO and I apologize to all our stakeholders.” The bank accelerated Masrani’s previously announced retirement, with Raymond Chun appointed as TD’s new Group president and CEO effective February 1, 2025. ^{21  22  23}

Alan MacGibbon, board chair of TD Bank Group, stated that the bank appointed new leaders across its U.S. operations following the scandal and that the board “has and continues to take action to address these failures and hold those responsible accountable.” ¹⁰

Financial Performance

For the fiscal year ending October 31, 2025, TD Bank reported adjusted net income of $15 billion in Canadian dollars ($11 billion U.S.), compared with $14.2 billion CAD ($10.4 billion U.S.) in fiscal 2024. The bank reported total assets of $2.09 trillion CAD ($1.5 trillion U.S. as of January 31, 2025). In the fourth quarter of 2025, the bank reported adjusted earnings of $3.9 billion CAD ($2.8 billion U.S.), up 22 percent compared with the fourth quarter of fiscal 2024. ²⁴

However, U.S. Retail reported a 76 percent decline in net income in the second quarter of 2025 compared with the prior year, largely due to the impact of the money-laundering settlement and associated compliance costs. ²⁵

In May 2025, TD Bank sold its remaining equity investment in the Charles Schwab Corporation for a profit of $8.975 billion. ²⁶