Statement from the Superintendent of Financial Institutions Regarding Toronto-Dominion Bank

OTTAWA, ON, Oct. 10, 2024 /CNW/ - Today, Peter Routledge, Superintendent of Financial Institutions, released the following statement: 

"Earlier today U.S. subsidiaries of Toronto-Dominion Bank pled guilty in the United States to charges related to deficiencies in their anti-money laundering regime. The information disclosed by Toronto-Dominion Bank's U.S. regulators is serious.

While OSFI continuously responds to all relevant information it receives during our supervisory activities, Section 22 of the OSFI Act and Section 636 of the Bank Act bar me or any OSFI official from disclosing information regarding the business or affairs of a federally regulated financial institution.

Deficiencies in any institution's anti-money laundering regime are a prudential risk. They can be illustrative of how non-financial risks can manifest as material financial risks. As outlined in our 2022 Risk Appetite Statement, our high appetite for early intervention means that we respond early and proactively to address risks that could jeopardize the public's confidence in the Canadian financial system.

In cases where such deficiencies arise, OSFI expects and can require the board and management of an institution to take the necessary corrective measures without delay and with particular emphasis on corporate governance, compliance, and financial and operational resilience.

As we move forward, I would like to thank U.S. authorities including our colleagues at the Office of the Comptroller of the Currency, the Federal Reserve Board, the Federal Deposit Insurance Corporation, and the Financial Crimes Enforcement Network (FinCEN) for their sustained and continuing engagement in this matter. We reiterate our support for the work of the Financial Transactions and Reports Analysis Centre of Canada (FINTRAC), Canada's financial supervisor for anti-money laundering activities." 

Quick Facts

• OSFI's mandate includes regulating and supervising Canadian financial institutions to determine whether they have adequate policies and procedures to protect themselves against threats to their integrity and security.
• As outlined in the Integrity and Security Guideline, OSFI expects federally regulated financial institutions to implement and sustain sound governance practices to protect themselves from threats to their integrity and security.
• OSFI's Regulatory Compliance Management Guideline and Corporate Governance Guideline lay out its expectations that boards and senior management of federally regulated financial institutions ensure their institutions conform with the laws in the jurisdiction in which they operate.

Associated Links:

• Superintendent speech - "Integrity and Security"
• OSFI's Integrity and Security Guideline
• OSFI's Approach to Risk
• Deputy Superintendent's speech – "Promoting Effective Risk Governance"
• OSFI's Intervention Guides
• Roles of OSFI and FINTRAC
• Video - OSFI's role and mandate

SOURCE Office of the Superintendent of Financial Institutions

OSFI - Media Relations, Email: [email protected], Telephone: [phone]