Sweden's FSA to Consider Sanctions Against Swedbank Amid Money Laundering Probe

By Dominic Chopping

STOCKHOLM--Sweden's financial supervisory authority said Tuesday that it will consider issuing sanctions against Swedbank AB (SWED-A.SK) as it continues its investigation into money laundering at the Swedish lender.

The Swedish FSA -- known as Finansinspektionen -- said in a statement that it is opening a sanction case in its investigation into Swedbank's governance and control of measures to combat money laundering in the bank's subsidiaries in the Baltic countries.

Swedbank, along with other Nordic lenders, are under investigation after a report by Swedish TV network SVT alleged large-scale money laundering through branches in Estonia.

"The decision on whether to open a sanction case is part of FI's investigation process," the FSA said.

"Inherent in this decision is that FI considers there to be sufficient grounds for assessing whether the deficiencies and weaknesses observed during the investigation should lead to a sanction or if the investigation should be closed in another manner."

Finansinspektionen's investigation into Swedbank's governance and control of measures to combat money laundering in the Baltic region is being conducted in cooperation with the supervisory authorities in Estonia, Latvia and Lithuania.

The Estonian supervisory authority has decided to open a sanction case with regard to Swedbank's subsidiary in Estonia.

The result of Finansinspektionen's investigation into Swedbank is expected at the beginning of next year. It's investigation into the same matter at Skandinaviska Enskilda Banken AB (SEB-A.SK) is still continuing, it added.

Write to Dominic Chopping at [e-mail]

(END) Dow Jones Newswires

October 29, 2019 04:03 ET (08:03 GMT)

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