TD Bank's logo on a building in Toronto.Chris Helgren/Reuters
Toronto-Dominion Bank’s top anti-money-laundering executive is leaving the lender 12 months after taking on the role overseeing its compliance and risk overhaul ordered by U.S. regulators and the Department of Justice.
Herb Mazariegos is stepping down as TD’s chief anti-money-laundering officer (CAMLO), the bank said in a statement Thursday. Canada’s second-largest bank is working through a suite of costly and extensive requirements levied by U.S. authorities, and Mr. Mazariegos was initially hired to manage those changes.
In early October, TD TD-T became the first lender in U.S. history to plead guilty to conspiracy to commit money laundering after a decade of shuffling money for criminals and neglecting employees’ concerns. U.S. regulators and the DOJ levied a fine of more than US$3-billion, imposed rare penalties that limit the bank’s expansion ambitions in its largest growth market and required TD to fix gaps in its anti-money-laundering program.
TD hired Mr. Mazariegos, who is based in Chicago, from Bank of Montreal in November, 2023, to replace Michael Bowman. Mr. Mazariegos was tasked with managing a costly overhaul of the bank’s anti-money-laundering program as U.S. regulators prepared to release sweeping requirements for the bank to remediate failures in its procedures.
The bank tapped Jacqueline Sanjuas as its new global head of financial crime risk management and CAMLO, effective Thursday.
Mr. Mazariegos joined TD under challenging conditions at the bank, and the needs of the lender have changed over the past year. Mr. Mazariegos is supportive of the bank’s leadership change in the financial crimes division, according to a source familiar with the matter.
The Globe and Mail is not naming the source because they are not authorized to discuss the matter publicly.
The bank has been under pressure to accelerate progress on its remediation plans and turnaround strategy. On Friday, TD said that chief executive officer Bharat Masrani is stepping down more than two months ahead of schedule, and board chair Alan MacGibbon is leaving his role less than a year into the job.
Over the past year, TD has hired several new anti-money-laundering and compliance employees and is implementing new technology and restructuring the division to enhance its monitoring program.
Ms. Sanjuas has spent the past year in New York as head of U.S. financial crime risk management working on changes and enhancements to TD’s anti-money-laundering program. In her new role, she will retain her position as U.S. Bank Secrecy Act (BSA) Officer. She will report to both TD’s head chief risk officer, as well as the CRO based in the U.S.
Prior to joining TD in early 2024, she oversaw anti-money-laundering compliance at U.S.-based Citibank and has more than 20 years of experience in compliance and risk management.
Stephen Joyce, vice-president of financial crime risk management, transformation delivery and enablement, is taking on the role of interim head of financial crime risk management for TD’s Canadian and international operations, excluding the U.S., and will report to Ms. Sanjuas.