Thursday, October 29, 2020

Swedbank Suspends CEO, CFO of Estonian Unit Amid Money Laundering Probe

-

Swedbank AB late Monday suspended the chief executive and chief financial officer of its Estonian business amid a continuing internal investigation into compliance of money laundering rules at the bank.

Swedbank came under scrutiny in February after a Swedish broadcaster reported that billions of dollars of illicit funds may have passed through the bank’s Estonian branch in a link to money laundering at Danske Bank AS (DANSKE.KO). Former Chief Executive Birgitte Bonnesen was ousted in March over the scandal while then Chairman Lars Idermark quit shortly after.

In April Swedbank set up an anti-financial crime unit within the bank and appointed law firm Clifford Chance to lead an internal investigation. Financial regulators in the U.S., Sweden and three Baltic countries have launched probes into the bank’s risk management and controls.

Read MoreSwedbank admits to shortcomings in anti-money laundering steps

- Advertisement -

The current chair of the management board and CEO of Swedbank Estonia, Robert Kitt, and the current CFO and management board member of Swedbank Estonia, Vaiko Tammevali, will both leave their positions on the management board and have been suspended until further notice, the bank said.

Furthermore, council member Priit Perens will end his employment with the bank and has left the council.

This is a “consequence of the ongoing internal investigation,” said Charlotte Elsnitz, head of Baltic banking at Swedbank.

“As previously communicated, Swedbank has initiated an in-depth internal investigation with the help of external resources to investigate historical anti-money-laundering compliance and Swedbank will continuously act upon the conclusions of the investigations.”

- Advertisement -

Olavi Lepp, currently chief risk officer, is named acting chairman of the management board and acting CEO of Swedbank Estonia, while Anna Kouts, currently head of treasury, is named acting CFO and acting member of the management board.

MUST READ

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

Advertisement
Advertisement

Latest News

This Week

Australian court approves $920 million Westpac money laundering fine

The Federal Court of Australia has agreed on the deal struck between the Australian Transaction Reports and Analysis Centre (AUSTRAC) and Westpac, ordering the Australian...

Macau to sign agreement with World Bank Group over money laundering risk assessment

Secretary for Security Wong Sio Chak was granted powers by the Chief executive to sign a Reimbursable Advisory Services Agreement Concerning Risk Assessment of...

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...

UK regulators fine Goldman Sachs £97 million over 1MDB scandal

Goldman Sachs International has been fined £96.6m by UK regulators for risk management failures connected to the 1MDB scandal. The Financial Conduct Authority and Prudential...
Advertisement

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