05:38 PM EDT, 04/30/2024 (MT Newswires) -- TD Bank Group (TD.TO, TD) was at last look up 0.3% in US after-hours trade Tuesday as it said it is taking an initial provision of US$450 million in connection with discussions with one of its U.S. regulators, related to previously disclosed regulatory and law enforcement investigations of TD's U.S. Bank Secrecy Act anti-money laundering program.

The Globe and Mail noted earlier this month that TD's chief executive officer Bharat Masrani pleaded with shareholders for patience on the probe by U.S. regulators into the lender's anti-money-laundering practices as the investigation stretches into its second year. Some analysts had estimated that the fine could range from US$500-million to US$1-billion, it said.

In a statement today TD said its regulatory and law enforcement discussions with three U.S. regulators and the Department of Justice are "ongoing". The bank added it anticipates additional monetary penalties. "This provision does not reflect the final aggregate amount of potential monetary penalties or any non-monetary penalties, which are unknown and not reliably estimable at this time."

TD said its AML program was "insufficient to effectively monitor, detect, report, and respond to suspicious activity". Work, it added, has been underway to remedy these deficiencies.

It noted the provision of US$450 million can be found in the U.S. Report of Condition and Income, for the three-month period ended March 31, filed earlier today by the Bank's U.S. bank subsidiaries, TD Bank, N.A. and TD Bank USA, with their U.S. regulators. The Call Reports are filed quarterly and do not comprise the Bank's second fiscal quarter consolidated financial results, which are scheduled to be released on May 23, 2024.