02:19 PM EDT, 05/23/2024 (MT Newswires) -- Toronto-Dominion Bank ( MLWIQXX ) fired employees responsible for lapses in its anti-money laundering program in the US, Chief Executive Bharat Masrani said Thursday.

"There were serious instances where the bank did not effectively monitor, detect, report and respond to suspicious activity. Criminals are regularly targeting financial institutions, and these cases, TD did not effectively thwart their activity," Masrani said during an earnings call, according to a Capital IQ transcript. "This is unacceptable."

The bank has been cooperating with the regulators and the US Department of Justice in good faith to bring a resolution to the investigation, he added.

Masrani did not say how many bank employees were terminated.

The Wall Street Journal reported earlier that more than a dozen employees were fired, citing a person familiar with the matter. The bank did not immediately reply to MT Newswires' request for comment.

Masrani also said the bank has prioritized the overhaul of its US anti-money laundering program and invested $500 million in remediation efforts.

Shares were down more than 2% in recent trading.

Price: 54.81, Change: -1.29, Percent Change: -2.30