04:37 PM EDT, 07/05/2024 (MT Newswires) -- Toronto-Dominion Bank's ( MLWIQXX ) chief compliance officer has departed at a critical moment as Canada's second-largest lender fixes weaknesses in its anti-money-laundering program amid investigations by U.S. regulators and law enforcement, The Globe and Mail newspaper is reporting Friday.

In May, The Globe reported that Monica Kowal, then TD's senior vice-president and chief compliance officer, was jointly overseeing part of the bank's remediation efforts after Canada's banking regulator, the Office of the Superintendent of Financial Institutions, or OSFI, ordered the lender to repair deficiencies in its regulatory compliance management (RCM) program following its own probe.

Ms. Kowal left TD on July 2, according to an internal memo seen by The Globe. She "played a key role developing strategies to mitigate regulatory compliance risks and providing advice, thought leadership and guidance on a broad range of regulatory compliance considerations," chief risk officer Ajai Bambawale said in the memo sent June 28.

The memo did not explain the reasons for her departure and TD declined a request for comment.

TD has tapped deputy chief compliance officer Erin Morrow to take on Ms. Kowal's previous role, the TD memo said. The bank hired Ms. Morrow in January from New York-based Citibank, where she worked in compliance and auditing for more than a decade. Previously, she worked at Grant Thornton LLP as principal, business advisory services, according to her LinkedIn profile.

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