Banks, Estonia, Financial Services, Legislation

SEB said it has compared the names with the bank's internal analysis, which has served as the basis for the assessment and the comments that the bank has made concerning the Baltic operations. The names on the list from SVT are, in all material respects, covered by the bank's own analysis and do not change the bank's fundamental assessment, SEB said.

"The names on the list from Sveriges Television have previously been handled and approximately 95% of the customer relations are terminated. When SEB has detected suspected activities it has been reported to relevant financial supervisory authorities. A few clients still have engagements with SEB. SEB's assessment is that those remaining customers meet the bank's criteria, and with the information that SEB has about the customers today, there has been no reason to terminate the customer relations. SEB works continuously to make sure that SEB's customers live up to the bank's requirements," the bank said.

"A majority of the names on the list are historical customer relations from Estonia. In 2006, SEB Estonia received criticism and recommendations from the Estonian financial supervisory authority for its handling of non-resident customers. At the same time, SEB received information from an external whistleblower. Both of these events resulted in SEB Estonia strengthening its routines, reporting a number of clients to the financial supervisory authorities and terminating several customer relations," SEB added.

"Although SEB historically has lived up to the regulatory requirements, we can with today's knowledge conclude that neither regulations nor the banking system's ability have been sufficiently efficient to handle risks of money laundering before 2008. Since then, SEB's ability to prevent, detect and report suspected financial crime increased over time. The regulations have been tightened, the awareness has increased and the bank's routines, processes and systems have improved," the bank said, adding that it is doing its utmost to prevent that the bank is used for financial crime. Nevertheless, SEB said the bank cannot guarantee that it has not been used nor that SEB will be used for money laundering.

"If new relevant information emerges that has previously not been known to SEB, SEB will take action. SEB wants to provide everyone who follows the bank equal, correct and transparent information. SEB has no further knowledge of any content that might emerge in Sveriges Television's program 'Uppdrag Granskning'," the bank said.

A money laundering scandal broke out around SEB last week as the bank was contacted by SVT's investigative news program "Uppdrag Granskning", which claimed that they have investigated money laundering in the Baltics and SEB is also involved in it.

The Estonian Financial Supervision Authority (FSA) announced on Friday last week that it is carrying out on-the-spot inspections at SEB into the bank's organizational structure and the systems and checks therein aimed at identifying transactions where money laundering is suspected. The Swedish FSA also conducted checks at SEB in Sweden.