Wednesday, October 28, 2020

Swedbank faces investigation over suspected market abuse


Swedbank AB, one of Sweden’s biggest banks, is being investigated by the local watchdog for suspected market abuse tied to its broader money laundering scandal.

The Stockholm-based bank, which is still the target of separate investigations in the U.S. and Europe for its laundering affair, said it received notification from the Swedish Financial Supervisory Authority that a new probe was under way, according to a statement on Friday.

Shares in Swedbank fell on the news and traded as much as 5.5% lower, pushing it to the bottom of the Bloomberg index of European financial stocks.

Swedbank said in a separate email that it is aiding authorities and that it is taking steps to prevent any future breaches.

- Advertisement -

“We have previously investigated and found deficiencies and shortcomings that are continuously remedied,” spokeswoman Unni Jerndal said. “We have a very ambitious action program for the purpose, and we report on it every quarter.”

The bank, which has already been fined a record 4 billion kronor ($455 million) in Sweden for handling suspicious transactions, said the latest probe covers its conduct between Sept. 20, 2018 through Feb. 20, 2019, and “pertains to disclosure of insider information and the obligation to establish an insider list…in connection with the disclosure of suspected money laundering within the company.”

Swedbank remains the target of multiple international investigations following reports by Swedish state broadcaster SVT that the bank may have allowed more that $100 billion in suspicious cash to flow through its operations.

Elliott Stein, a senior analyst in litigation for Bloomberg Intelligence in New York, said the “risk of fines related to this disclosure issue is likely incremental to its larger money laundering issues. It’s also unclear why Swedish authorities weren’t aware of this issue earlier in their money-laundering probe.” Stein said he and his team “still expect a potential fine in the U.S.”

- Advertisement -

In early 2019, Swedbank’s headquarters were raided by the Swedish Economic Crime Authority as part of what was then a preliminary probe into whether the bank breached insider rules. That followed revelations that Swedbank had warned its biggest shareholders that SVT was about to run a critical report, which resulted in a sharp drop in its share price.


Nigerian court declines to issue international arrest warrant for fugitive ex-Petroleum Minister in corruption case

The Abuja Division of the Federal High Court, on Wednesday, refused an application by the Economic and Financial Crimes Commission, EFCC, for an arrest...

South Korea’s former Vice Justice Minister sentenced to jail for bribery and sexual favors

Former Vice Justice Minister Kim Hak-eui, the figure at the center of one of Korea’s biggest political sex scandals, was placed under pretrial detention...

Beam Suntory Inc. fined $19.6 million in foreign bribery case

Beam Suntory Inc. (Beam), a Chicago-based company that produces and sells distilled beverages, has agreed to pay a criminal monetary penalty of $19,572,885 to...

Julius Baer to deny two former CEOs their bonuses over money laundering scandal

Julius Baer will withhold millions of francs in bonuses from its former chief executives Boris Collardi and Bernhard Hodler, as a result of a...

Goldman Sachs executives to cover part payments of $3 billion fines in 1MDB scandal

Nine current or former Goldman Sachs executives, including CEO David Solomon, will have to pay back hundreds of millions of dollars in compensation over...

Subscribe For More

Get our daily notification on the latest financial crimes news around the World


Latest News

This Week

Spanish police arrests operator of Crypto Arbitrage firm Arbistar on fraud charges

The CEO of Arbistar the Spanish investment company, Santiago Fuentes, has been arrested and arraigned on charges of fraud, belonging to a criminal organization...

Texas AG Ken Paxton fires second whistleblower who accused him of bribery

A second whistleblower has been fired from the Texas attorney general’s office after reporting his boss, Texas Attorney General Ken Paxton, to law enforcement for...

Indonesia sentenced stockbroker to life over fraudulent investment scheme

Renowned stockbroker Benny Tjokrosaputro was sentenced to life by the Jakarta Anticorruption Court on Monday evening for his role in a major graft scandal...

Brother of ex-Pakistan PM Nawaz Sharif jailed for money laundering

Pakistan Muslim League-Nawaz (PML-N) chief and Opposition Leader in the National Assembly Shehbaz Sharif was sent to jail on Tuesday in a money laundering...

Adblock Detected!

Our website is made possible by displaying online advertisements to our visitors. Please consider supporting us by whitelisting our website.

Enable Notifications    Ok No thanks