Swedbank Settles New York Charges in Panama Papers Probe
The settlement resolves a DFS investigation into Swedbank’s compliance with New York banking law, which was sparked by the 2016 Panama Papers leak, and the bank’s failure to cooperate fully with requests for information during that investigation, DFS said in a July 16 press release.
“Financial institutions have a legal obligation to comply with New York’s laws and regulations designed to protect the integrity of the financial system,” Acting Superintendent Kaitlin Asrow said in the release. “The Department holds institutions accountable to ensure they meet their obligations and cooperate fully with the Department’s oversight.”
Swedbank said in a July 16 press release that the settlement with DFS covers its failure to disclose information to the authority on two occasions, in 2016 and 2018, and concludes all investigations into the bank’s “historical shortcomings.”
Investigations began in 2019 and were conducted in the United States, Sweden and Estonia. They concerned Swedbank’s efforts to prevent money laundering and terrorist financing as well as the disclosure of information between 2007 and 2019, according to the release.
Göran Persson, chairman of the board of directors at Swedbank, said in the release: “All investigations into the bank’s historical shortcomings have been concluded. Swedbank can now devote full focus to customers, developing the business and delivering shareholder value.”
Jens Henriksson, president and CEO of Swedbank, said in the release: “The DFS investigation has involved conduct from almost a decade ago. We can now put it behind us.”
It was reported in March 2019 that in the wake of money laundering scandals, DFS alerted Swedbank in February 2019 that it was looking into seven different cases at the bank.
That report came on the same day that prosecutors in Sweden raided Swedbank, hours after it was revealed that the bank had handled money coming from non-residents in high-risk countries, mainly from Russia, via its Estonian branch over the previous 10 years.
