TORONTO, April 18 (Reuters) - TD Bank CEO Bharat

Masrani said on Thursday the bank was working on its anti-money

laundering (AML) compliance program, acknowledging that it was

not up to the mark, and that the U.S. Justice Department's probe

was still ongoing.

"We are in discussions with our regulators. Regretfully, our

AML program was not where it needed to be, and we are addressing

it," Masrani told shareholders at TD's annual meeting.

"We are working diligently to strengthen our program. We

have onboarded globally recognized talent and leadership, and

invested in technology, process redesign, training, and other

activities," he said.

Masrani said he could not disclose any additional details

given the confidential nature of regulatory discussions.

TD Bank last year had said it expects fines and

"non-monetary" penalties related to investigations by U.S.

authorities, including in connection with an investigation by

the U.S. Department of Justice.