TD Bank’s CEO Bharat Masrani to Retires – Leadership Transition Amid Regulatory Challenges

TD Bank has officially announced that its CEO, Bharat Masrani, will retire on April 10, 2025. The leadership baton will pass to Raymond Chun, currently the head of Canadian personal and commercial banking, who will assume the role of CEO.

Chun is slated to take on the position of chief operating officer beginning November 1, 2024, before stepping into the CEO and group president role the following April. Masrani, meanwhile, will continue to advise the bank until October 31, 2025. In a separate announcement, TD revealed that Riaz Ahmed, who leads TD Securities, the bank’s capital markets division, will retire in January.

These leadership changes come on the heels of TD’s recent disclosure that it has earmarked $3 billion for anticipated fines related to anti-money laundering (AML) issues in its U.S. operations.

Masrani acknowledged responsibility for the regulatory challenges, stating that the AML deficiencies occurred under his leadership. He emphasized that TD Bank is committed to a smooth leadership transition, adding that the bank has a solid team of senior executives ready to navigate the shift.

Masrani’s tenure with TD dates back to 1987, when he began as a commercial lending trainee. After being designated as the next CEO in 2013, he officially took over as president and CEO in 2014. His leadership coincided with the bank’s aggressive expansion into the U.S. market, where it now operates around 1,150 branches along the East Coast, surpassing its presence in Canada.

Chun, TD’s incoming CEO, has been with the bank for 32 years, previously overseeing the wealth management and insurance divisions.

The timing of Masrani’s retirement has long been anticipated, as TD Bank’s AML troubles have become more pronounced. The upcoming penalties stem from a series of AML-related issues in the U.S., where the bank faced scrutiny from regulators, including the U.S. Department of Justice. One high-profile case involved allegations that TD was used to launder over $650 million by Chinese drug traffickers between 2016 and 2021, with a bank employee allegedly accepting a bribe to aid in the money laundering activities.

TD Bank has acknowledged deficiencies in its AML protocols, admitting that its U.S. program failed to effectively prevent criminal activity. Initially, the bank projected it would pay $450 million in penalties, but by August, that figure had soared to $3 billion.

The bank is working to resolve most of its AML-related investigations by the end of the year, alongside a series of new executive appointments. Paul Clark will lead the Wealth Management division, Sona Mehta will replace Chun as the head of Canadian personal banking, and Tim Wiggan will succeed Ahmed as the head of TD Securities.

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