Bank shuffles leadership amid sanctions
Toronto-Dominion Bank (TD) has announced the departure of its chief anti-money laundering officer, Herb Mazariegos, as part of an ongoing leadership shakeup. According to a report from Financial Post, the move follows sanctions imposed by US regulators last year over the bank’s failure to adequately monitor money-laundering activities at its branches.
Mazariegos, who joined TD in late 2023 after serving in a similar role at the Bank of Montreal for five years, will be succeeded by Jacqueline Sanjuas. Sanjuas has been appointed global head of financial crime risk management, the bank said on January 24. TD noted that Mazariegos would assist with a smooth transition.
Sanjuas joined TD in January 2024 as head of US financial crime risk management, bringing over two decades of experience from Citigroup Inc. TD credited her with spearheading significant improvements to its anti-money laundering (AML) program in the United States over the past year.
The leadership changes come amid broader reforms at TD. Last week, the bank expedited the appointment of Raymond Chun as its new chief executive officer, advancing his start date to February 1. Chun replaces Bharat Masrani, whose compensation for 2024 was significantly reduced due to the bank’s AML failures. Masrani’s pay was cut by 89%, falling from $13.2 million to $1.5 million, as he received no cash incentive award or equity compensation.
TD was fined approximately $3.1 billion in October 2024 by the US Department of Justice and other regulators for its AML deficiencies. The sanctions also included a cap on the expansion of its US retail banking operations, an unexpected setback that prompted the bank to suspend its medium-term financial targets in December.
The bank acknowledged that these challenges would likely hinder its ability to achieve earnings growth in fiscal 2025. TD had previously set targets for 7% to 10% earnings per share growth and a 16% return on equity but plans to introduce new financial goals in the latter half of 2025.
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