Estonian Watchdog Fines Branch of SEB Swedish Bank for €1M

The Estonian Financial Supervision Authority fined the local branch of the Swedish SEB bank for €1 million for deficiencies in anti-money laundering and counter-terrorism financing systems, the agency’s press service said on Thursday.

“Shortcomings in the collection of customer data were detected at the Estonian branch of SEB Bank, as well as in the system for reporting suspicious transactions of the money laundering data bureau. The Inspectorate ordered the bank to eliminate the identified shortcomings within six months. For violations revealed for the period 2017-2019, the inspection imposed a fine of one million euros,” the report said.

According to Kilvar Kessler, Chairman of the Financial Supervision Authority, since 2014 the Inspectorate has been sending a clear signal to banks that they should have control systems that meet internationally recognized anti-money laundering standards. “We identified in SEB’s work shortcomings in combating money laundering and decided: to order the bank and impose a fine,” the press service quoted Kessler as saying.

Earlier Thursday, the Swedish Financial Supervision Authority fined SEB’s parent bank 1 billion kroner (about €100 million) because the financial institution was unable to prevent money laundering at its subsidiaries in Lithuania, Latvia and Estonia, according to press release financial regulator.

Possible violations were first reported in November by SVT. Earlier, SVT journalists found large-scale violations in the work of Swedbank subsidiaries in the Baltic states, and the investigation of the financial inspection confirmed the data of journalists. The bank was fined €400 million, and its management was dismissed.


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