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TD Bank Boosts Anti-Money Laundering Efforts with New Tech and Team

Anti Money Laundering

BusinessHonor: TD Bank Strengthens AML Tech

Business Honor
08 September, 2025

TD Bank invests heavily in AML upgrades, using AI tools and expert team to prevent money laundering.

To strengthen its anti-money laundering (AML) program, Toronto-Dominion Bank (TD) has assembled a group of 40 seasoned executives from leading financial institutions and law enforcement organizations, including the FBI and Homeland Security. Nearly a year has passed since U.S. regulators penalized TD for failing to prevent money laundering at its branches.

At the Scotiabank Financials Summit in Toronto, Leo Salom, the CEO of TD Bank in the United States, provided information. The bank's AML controls will be strengthened, he said, thanks to the new team's invaluable experience. TD has made numerous actions to address its AML flaws after being hit with billions of dollars in fines and growth limits from US authorities. These adjustments are having an effect. This year, the bank has consistently exceeded earnings projections, particularly in the areas of wealth management, insurance, and personal and business banking in Canada.

Compared to a $181 million loss during the same period last year, TD's net income for the three months ending July 31 was $3.3 billion, a significant improvement. Setting aside funds for money laundering investigations was the cause of last year's loss. By introducing a new transaction monitoring technology, TD has achieved a "major milestone," according to Salom. To properly assess risk levels, the bank also implemented a customer risk rating system.

To enhance its AML system, TD has unveiled two machine-learning tools. These techniques aid in more efficiently screening unfavorable media alerts and identifying odd transactions. The bank intends to finish the majority of its AML enhancements by the end of 2025, with more significant work to follow in 2026 and 2027. This year, TD will invest close to $500 million in its AML program, and it intends to do the same the next year. Salom underlined that the goal of these efforts is to create a top-notch AML system that would assist the bank's long-term security and growth.