Nordea Bank Fined for Inadequate Checks to Stop Money Laundering
Nordea Bank AB (NDA), the Nordic region’s largest lender, was fined 30 million kronor ($4.7 million) by Sweden’s financial watchdog for failing to comply with requirements designed to prevent money laundering.
Nordea, based in Stockholm, received a remark and an administrative fine for being “deficient in its internal governance and control with regard to the European Union sanctions regulations,” the Financial Supervisory Authority said today in a statement on its website.
The regulator said Nordea “did not screen beneficial owners against the EU sanctions regulations for several years” and that it “has exposed itself to the risk of giving blacklisted individuals access to funds and economic resources without the bank’s knowledge.” Nordea failed to disclose all its transactions in frozen accounts, notifying the watchdog in only 16 of 74 such cases, the watchdog said.
The regulator also criticized Nordea for being “deficient in its risk assessment” relating to a customer from Gibraltar it didn’t identify.
In a separate statement today, Nordea said the fine, which will be paid by its Swedish unit, was “high” given that no prohibited transactions had taken place in the frozen accounts mentioned. The bank said it has taken measures to reduce the risks listed in the FSA’s remark.
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