TD Bank is investing in technology for anti-money laundering compliance after the U.S. Department of Justice fined the bank $3 billion in October for money laundering. 

“This quarter, we implemented further improvements in transaction monitoring and refinements in our customer risk rating methodology,” Chief Executive Bharat Masrani said during the bank’s fiscal fourth quarter earnings call today. “We also rolled out additional training for risk, governance and control [for our] colleagues.”

As part of its U.S. anti-money laundering remediation efforts, the bank is investing in: 

• AML leadership; 

• Governance and infrastructure; and 

• Data and technology.  

With these efforts in place, TD’s tech expenses increased by 17% year over year to CA$730 million ($520 million) in Q4, which ended Oct. 31, according to its earnings supplement. 

THE BIG PICTURE: The $1.9 trillion TD is also investing in the integration of financial service provider Charles Schwab, in which it acquired a 13.5% stake in 2020.   

Similarly, RBC this week reported it had spent more than $250 million on the integration of its recently acquired HSBC Canada. National Bank of Canada, meanwhile, spent $135 million on its acquisition of Canadian Western Bank and expects to double its net interest income from 2026, according to NBC’s earnings report. 

BY THE NUMBERS: In Q4, TD reported: 

• Adjusted revenue of $10.6 billion, up 28% YoY; 

• Adjusted net income of $2.1 billion, up 27% YoY; and 

• Adjusted net interest income of $5.6 billion, up 6.7% YoY. 

OF NOTE: The Toronto-based TD Bank has been deploying new technologies including gen AI and virtual reality to improve operations and develop deeper consumer relationships.  

The bank has deployed gen AI in its operations, including software development and aiding customer representatives, Imran Khan, head of TD Invent, the bank’s innovation arm, previously told Bank Automation News. 

The bank will continue to invest in technology and data, Masrani said. For example, TD Mortgage Direct solution uses data analytics to drive customer engagement, and the bank is seeing leads converting at three times the rate of prior conversions, he added. 

Editor’s note: All figures have been converted to USD. 

Register here for early-bird pricing for Bank Automation Summit 2025, taking place March 3-4 in Nashville, Tenn. View the full event agenda here.