TD Bank took a provision of $2.6 billion in the third quarter as it estimates the cost of fines from its U.S.-based money laundering compliance lapses. 

During the Canadian bank’s Q3 earnings call, Chief Executive Bharat Masrani gave an update on TD’s remediation program resulting from the U.S. money laundering investigations. He said the bank is investing in leadership and technology, including transaction monitoring. 

“The remediation program is well underway,” Masrani said during the earnings call today. “We’ve invested in data and technology to enable improved transaction monitoring and data analytics capabilities. And we’ve implemented new cross-functional procedures for preventing, detecting and reporting suspicious activity.”

To keep up with the remediation costs, the bank announced Aug. 21 that it has sold more than 40 million shares of The Charles Schwab Corp. 

BIGGER PICTURE: As the bank moves forward with remediation efforts, data continues to be a focus at the institution, Masrani said.  

“This quarter, TD completed the migration of its main data platform to the cloud, eliminating related legacy systems and modernizing the bank’s data infrastructure,” he said. 

BY THE NUMBERS: The bank reported in Q3: 

• Expenses increased 50% year over year, including costs related to the money laundering investigations, totaling $11 billion; and 

• Technology and equipment expenses up 11% YoY $672 million. 

MARKET REACTION: TD Bank shares were down 2% to $58.45 at market close Thursday. TD has a market capitalization of $102.8 billion.  

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