06:52 AM EST, 11/22/2024 (MT Newswires) -- A shareholder advocacy group is calling on Toronto-Dominion Bank ( MLWIQXX ) (TD.TO, TD) to launch an independent review of its board of directors after an investigation by U.S. regulators and law enforcement found it guilty of conspiracy to commit money laundering, The Globe and Mail is reporting Friday.

It noted investors for Paris Compliance, which aims to hold companies to account on climate action, filed a shareholder proposal Friday requesting TD to do an impartial investigation into its board governance policies and director selection criteria. Shareholders are concerned the governance issues that contributed to the bank's compliance failures are systemic, and could allow for other gaps that extend beyond money laundering, according to the group.

"In light of the bank's recently exposed governance failures, we are looking for board accountability and renewal, including that new board members are properly qualified to manage major risks and opportunities," Kyra Bell-Pasht, the group's director of research and policy, said in an e-mailed statement.

Last month, the report noted, TD pleaded guilty to conspiracy to commit money laundering and agreed to pay a penalty of more than US$3-billion to U.S. regulators and the Department of Justice. The Federal Reserve Board required TD to conduct an independent review of the bank's board of directors and management.

TD said that it already intends to conduct a review.

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