Monday, October 26, 2020

Swedish Bank SEB Ignored Money Laundering “red flags” in Suspicious Transactions in Estonia

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Swedish Television (SVT) reported on Wednesday that it had obtained a list of 194 clients of Swedish bank SEB (SEBa.ST) connected to suspected money laundering in Estonia.

The public broadcaster’s investigative show “Uppdrag Granskning” reported that the client list, which also showed about 2,000 transactions, contained “red flags” – names associated with well-known proxies for Russian non-resident companies suspected of money laundering.

SVT said the report was done in collaboration with the Organized Crime and Corruption Project consortium of investigative reporting, which provided a cache of leaked information.

SVT said the transactions included around 475 million Swedish crowns ($49.35 million) connected to the so-called Magnitsky affair in Russia. The money moved through SEB accounts, the broadcaster reported.

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Sergei Magnitsky was a Russian lawyer arrested in 2008 after accusing Russian officials of involvement in large-scale tax fraud. He died in a Moscow prison in 2009 after complaining of mistreatment.

The public broadcaster’s investigative show “Uppdrag Granskning” reported that the client list, which also showed about 2,000 transactions, contained “red flags” – names associated with well-known proxies for Russian non-resident companies suspected of money laundering.

SVT said the report was done in collaboration with the Organized Crime and Corruption Project consortium of investigative reporting, which provided a cache of leaked information.

SVT said the transactions included around 475 million Swedish crowns ($49.35 million) connected to the so-called Magnitsky affair in Russia. The money moved through SEB accounts, the broadcaster reported.

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Sergei Magnitsky was a Russian lawyer arrested in 2008 after accusing Russian officials of involvement in large-scale tax fraud. He died in a Moscow prison in 2009 after complaining of mistreatment.

Danske Bank is under investigation in several countries over 200 billion euros ($220 billion) in suspicious payments moved through its Estonian branch between 2007 and 2015 in one of the largest money laundering scandals uncovered.

At market close on Tuesday, SEB shares were down almost 8% since the start of the year. Before SEB’s Nov. 15 statement, the bank had been trading up over 7% for the year.

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