Danske Bank laundering probe slams ‘deficiencies’

Sweden’s financial regulator Finansinspektionen (FI) said Danske Bank “has not sufficiently assessed the risk of how the bank’s products and services in Sweden may be used for money laundering and terrorist financing.”

The regulator said Danske Bank “must therefore rectify these deficiencies no later than June 30, 2022.”

Finansinspektionen said it opened an investigation in June 2020 with the aim of investigating compliance with the Anti-Money Laundering and Counter- Terrorist Financing Act.

“The investigation identified deficiencies in Danske Bank’s work to combat money laundering and terrorist financing,” said the regulator.

“The bank has rectified some of the deficiencies and presented action plans for, in part, the insufficient general risk assessment and how the bank’s products and services may be used for money laundering.

“However, FI takes the position that the bank is taking too long to implement the measures.

“Therefore, FI is issuing an injunction on Danske Bank to take remedial action.”

Karin Lundberg, executive director of FI’s banking section, said: “The general risk assessment is crucial for how a bank designs its work to combat money laundering and terrorist financing since it establishes the basis for significant parts of the bank’s other measures in this area.

“It is therefore very important that the bank rectify this deficiency promptly.”

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Dalriada Media LLC sites are edited by veteran news journalist Mark McSherry, a former staff editor and reporter with Reuters, Bloomberg and major newspapers including the South China Morning Post, London's Sunday Times and The Scotsman. McSherry's journalism has also appeared in The Washington Post, The Guardian, The Independent, The New York Times, London's Evening Standard and Forbes. McSherry is also a professor of journalism and communication arts in universities and colleges in New York City. Scottish-born McSherry has an MBA from the University of Edinburgh and a Certificate in Global Affairs from New York University.