Employees of Swedbank Estonia's nonresident unit kept data on the true owners of certain high-risk, foreign legal entities they served hidden from their colleagues in anti-money laundering compliance for years as the lender processed tens of billions of euros in suspicious funds. In a 218-page report on its 13-month internal investigation, global law firm Clifford Chance claimed Monday to have found no evidence that the entire banking group as an institution knowingly laundered funds, but concluded that poor governance and substandard compliance practices, especially in the Baltics, exposed the lender to significant financial-crime risks. "From before 2007, until a decision...
Sweden's financial regulator fined Swedbank a record €360 million for "serious deficiencies" in its anti-money laundering program and lack of cooperation with regulatory probes in the Nordic nation as well as Estonia.
The U.K. law firm that Swedbank hired last year to investigate vast flows of illicit funds through its accounts has identified almost $5 million worth of transactions that may have breached U.S. sanctions, the Swedish lender disclosed Wednesday.
Attorneys and accountants investigating suspected attempts to launder funds through Swedbank are reviewing "30 billion transactions" in an internal probe that has cost more than $100 million to date, the lender disclosed Wednesday.
After Swedbank's affiliate in Estonia decided to eventually offboard one of its largest clients, Carbo One, over money-laundering concerns in late 2016, the company still managed to transfer millions of euros to a similarly named Scottish entity that appears to have existed only on paper.