Stockholm-based lender Swedbank has been fined $5.5m (SEK46.6m) for weak anti-money laundering (AML) controls.

The failings cover the period between December 2016 and February 2019.

Go deeper with GlobalData

Data Insights

The gold standard of business intelligence.

Find out more

Related Company Profiles

View all

Nasdaq Stockholm’s disciplinary committee said that the bank had loopholes in its AML processes and routines for a long time and that its former top brass was aware of the failings.

The bank said that it largely agrees with Nasdaq’s conclusions. It had already allocated SEK30m for the expected penalty.

Last year as well, Swedbank was fined SEK4bn for serious deficiencies in its AML controls in its Baltic operations.

Notably, Swedbank recently started limiting lending based on climate criteria. The development came amid criticism that banks are not doing enough within their core lending operations to address climate change.

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

The bank said that it will not offer fresh credit for new oil and gas projects or provide funds to enable production in the Arctic.

Commenting on the decision, Swedbank president and CEO Jens Henriksson said: “During the last year, the bank has undertaken several measures to strengthen processes for the disclosure of information.

“Today’s decision means that yet another issue concerning the bank’s historical shortcomings, is closed.”

Last month, Dutch lender ABN Amro agreed to pay $574m to settle allegations of AML lapses.

The findings follow a probe by the Dutch Public Prosecution Service (DPPS), which found “serious shortcomings” in the bank’s processes to fight money laundering in the Netherlands from 2014 to 2020.

The bank was found having loopholes in its client acceptance, transaction monitoring and client exit processes.