TD Bank Group in Toronto has reduced its stake in Charles Schwab Corp. as it looks to offset costs tied to addressing Bank Secrecy Act and anti-money laundering compliance.
The company said in a press release that it sold 40.5 million shares of Schwab common stock, lowering its stake in the brokerage firm from 12.3% to 10.1%. TD has no current intention to divest additional shares.
Separately, TD said it is setting aside $2.6 billion to prepare for “monetary and non-monetary penalties” tied to ongoing civil and criminal investigations into its BSA and AML program. The bank said it expects that a global resolution will be finalized by the end of this year.
“We recognize the seriousness of our U.S. AML program deficiencies and the work required to meet our obligations and responsibilities is of paramount importance to me, our senior leaders, and our Boards,” Bharat Masrani, group president and CEO of TD Bank Group, said in the release.
” TD has strengthened its U.S. AML program with the addition of globally recognized leaders and talent from across the industry, including experts from regulatory agencies, law enforcement and government,” he added. “The bank is also making important investments in data and technology, training and process design.”