STOCKHOLM, Sweden—Swedbank has reached a final settlement with the U.S. Treasury's Office for Foreign Assets Control over issues related to preventing money laundering. The bank has agreed to pay 37 million Swedish kronor ($3.5 million) to settle the case.
According to Morningstar, the settlement concerns transactions that were conducted by Swedbank in Latvia in 2015-16 and were reported by Swedbank to OFAC in 2020. The transactions consisted of salary payments and payments that were associated with the operation of a vessel whose owner and operator were located in Crimea, that were subject to U.S. economic sanctions, the report stated.
Swedbank made a provision of SEK40 million regarding the agreement with OFAC in March.
The bank is under investigation for governance deficiencies related to anti-money laundering measures in its Baltic subsidiaries after a Swedish TV show reported in 2019 that billions of dollars of potentially illicit funds might have passed through the bank.
Earlier Fine
The Swedish financial regulator handed Swedbank a SEK4 billion fine in 2020 after finding the lender's Baltic operations had serious deficiencies in its anti-money laundering measures as well as shortcomings in its cooperation with the investigation, Morningstar noted.
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