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Report results lead Swedbank to rebuild AML systems

Monday 6 April 2020 12:52 CET | News

Swedbank has announced it is overhauling its anti-money laundering (AML) IT infrastructure.

The decision was taken after a critical report identified deficient that AML detection, control, and customer validation systems as being the key factors that contributed to the Swedish bank’s systematic failure to prevent money laundering-related transactions in its Baltic subsidiaries. It found that EUR 36.7 billion in transactions, all carrying a high risk for money laundering, were processed through the bank’s branch network in Estonia, Latvia, and Lithuania between 2014 and 2019.

The report calculated that an estimated EUR 4.4 billion in transactions may have violated financial sanctions imposed by the US against named Russian oligarchs suspected of laundering money through banks operating in the Baltic states.     

Swedbank is rebuilding its AML infrastructure against the backdrop of continuing investigations by economic crime agencies in Sweden, Estonia, and the US. In March, financial market regulators in Sweden and Estonia imposed fines totalling EUR 347m on Swedbank in respect of breaches of money-laundering laws. 


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Keywords: Swedbank, AML, fraud detection, banks, customer validation, transactions , financial sanctions, economic crime, Sweden
Categories: Fraud & Financial Crime
Companies:
Countries: Sweden
This article is part of category

Fraud & Financial Crime