Swedbank pledges prompt release of money laundering probe

This post was originally published on this site

© Reuters. FILE PHOTO: Swedbank sign is seen on the local headquarters building in Tallinn© Reuters. FILE PHOTO: Swedbank sign is seen on the local headquarters building in Tallinn

By Colm Fulton and Johan Ahlander

STOCKHOLM (Reuters) – Swedbank (ST:) pledged on Wednesday to conclude an internal probe into alleged money laundering at the Swedish lender by early next year, and said it was unaware of any breaches of U.S. sanctions after a broadcaster alleged such a lapse.

“If there has been unethical behavior … we should of course get the bottom of it,” Swedbank CEO Jens Henriksson said in a statement.

“The internal investigation is expected to be concluded in early 2020,” he said, adding “conclusions from the investigation will be communicated”.

Henriksson make the statement after Sweden’s public service broadcaster (SVT) reported on Wednesday, in a program aired on its website, that Swedbank may have violated U.S. sanctions against Russia, citing an unidentified Wall Street source.

Swedbank, whose shares were down 3% at 0830 GMT, lagging peers, said it was not aware of such a violation.

In its report, SVT alleged Swedbank transferred more than 1 million euros ($1.1 million) from Russian arms firm Kalashnikov Group to a U.S. subsidiary through the business network of a Russian oligarch who is a shareholder in Kalashnikov.

Speaking to SVT, Henriksson said: “I’m going to take this information and give it to our investigators and that we’ll take a closer look at it.” He declined to confirm the existence of such customers.

Kalashnikov’s Russia-based parent company is on a U.S sanctions list after Russia’s annexation of Crimea from Ukraine in 2014.

Kalashnikov’s U.S-based subsidiary is permitted to sell arms it produces in the United States on condition it receives no financial transfers from its Russian parent, according to SVT.

A Kalashnikov spokeswoman declined to comment on the SVT report.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.

Add Comment