Banks, EU – Baltic States, Legislation

"The information from SVT confirms that there is a risk that Swedish banks are being used for money laundering, primarily in the banks that have operations in the Baltics. The disclosures are important, even if the scope of the suspected transactions in Swedbank appears to be much smaller so far in comparison to Danske Bank," the financial watchdog said on Thursday.

"The disclosures are very serious and will be included in the financial supervisory authority's ongoing and future supervision activities. They will also be discussed with the supervisory authorities in the three Baltic countries in the near future," Erik Thedeen, director general of Sweden's Finansinspektionen, said.

According to the Swedish public broadcaster SVT, extensive and systematic money laundering is suspected to have taken place at Swedbank that lasted for nearly a decade and was connected with the Baltic units of Danske Bank.

The investigative journalism TV program Uppdrag Granskning said that at least 40 bn Swedish kronor or some 3.8 billion euros moved between Swedbank and the Baltic units of Danske Bank.

SVT reported that the transfers with a suspicion of money laundering took place in 2007-2015. Among some 50 customers are shell companies and corporate customers that had no business activities but made transfers amounting to millions.

CEO of the Swedish lender Swedbank Birgitte Bonnesen said the bank is not sufficiently acquainted with the information serving as basis for the allegations presented by the Swedish public broadcaster SVT in order to comment on them. The bank said it has complied with all relevant anti-money laundering regulations.

"We do not know about those 50 customers and the alleged number -- 40 bn kronor -- does not sound familiar, either," Bonnesen told the media. SVT has not shared the information serving as basis to its allegations; Bonnesen said, however, that Swedbank is interested in any information that would help the bank to better identify suspicious transactions.

The Estonian Financial Supervision Authority (FSA) said that the suspected money laundering at Swedbank is an assessment by a media program, which has yet to be confirmed or refuted by investigative authorities, 

Like any other bank's, Danske's operations have not been isolated from the rest of the financial system, spokespeople for the Estonian financial watchdog said.

"There are certainly payments received from other banks as well as those made to other banks; thus, said payments may regard many banks, including those of the states of the European Union. The same goes for money of suspicious origin, too," the Estonian FSA said.

FSA added that it neither automatically means nor precludes, however, that the bank receiving payments in the alleged money laundering case has committed a crime or violated any know-your-customer requirements it is subject to.