Nordic banks join forces to fight money laundering

Monday 13 May 2019 13:31 CET | News

The Nordic region’s six banks have joined together to set up a customer checking center to fight money launderers.

This agreement is also part of efforts to recover from a scandal that has shaken confidence in the finance industry. As such, Danske Bank and Swedbank have lost billions from their market value after becoming embroiled in a money laundering scandal involving their businesses in the Baltics. In their promise to take steps to rectify shortcomings, the banks planned the joint venture with rivals Handelsbanken, Nordea, SEB, and DNB to perform common customer checks.

Regulators and banks see these so-called KYC checks as a safeguard against money laundering, since the process of verifying the identity of customers, companies, and business associates can help banks to spot or monitor suspicious clients. Even though the banks have not worked together previously, the new body is expected to create a standardised KYC process for large and mid-size Nordic corporate customers across the six banks.

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Keywords: Nordic banks, money laundering, Danske Bank, Swedbank Handelsbanken, Nordea, SEB, DNB, KYC, financial crime, checks, safety, identity, verification, finance industry, regulators, fraud, fraudsters
Countries: World