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Swedbank admits to failing in combating money laundering

Swedbank faces several probes in the US and in the EU following the money laundering scandal which affects the Bank.

Shares continue dropping while pressure grows making very difficult for the bank to maintain its reputation.

The Bank faces additional investigations in the Baltics to define the involvement of the institution in the scandal known as Landromat.

According to sources, around €200 billion of Russian criminal money was laundered using the nordic banks Danske Bank and SwedBank and involving Deutsche Bank.

Speculations over the set of sanction which could be applied by US authorities grows as officials claim that apart form the financial penalties, the bank may face the US passport of the bank.

Banking passport are the permission given to t-a Financial Institution to transact in a particular currency, without such US passport, the bank will be unable to conduct USD transactions.

The Nicaraguan bank BanCorp was withdrawn its USA only weeks before requesting voluntary liquidation.

As part of this scandal, the bank has lost its CEO and the Chairman of the Board of Directors already.

Mr Karlsson (acting CEO of the bank) told reporters that: “For Swedbank to deserve the trust of customers, authorities, investors, employees and other stakeholders, continuous improvement in our anti-money laundering work is required,”.

This year only, the bank saw a decrease on share value of 25% while making provisions to face the potential financial impact of fines and enforcement measures.

Source

https://www.reuters.com/article/us-swedbank-results/swedbank-admits-money-laundering-flaws-faces-multiple-u-s-probes-idUSKCN1S10DK

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Jaime Prieto

Mr. Jaime Prieto is a lawyer experienced in Financial Crime, Anti-Money Laundering and Counter Terrorism Financing having extensive professional experience in both public and private sectors. Mr. Prieto has been a Head of Compliance in the European Union, the Americas and the Caribbean for banks, trust companies, asset managers, Big Four audit and advisory firms, RegTechs, government agencies and other types of financial professionals. In addition to his experience, he has been legal and educational chair in several compliance and sectorial organisations and performed as a teacher and speaker for a number of organisations and in several local and international forums. Furthermore, Mr. Prieto is an experienced Money Laundering Reporting Officer anda Data Protection officer with additional experience in risk management.

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