Sweden's SEB to pay $33 million to US over money laundering control failings in the Baltics

Swedish financial services group Skandinaviska Enskilda Banken (SEB) will pay US authorities $33 million (about 29 million euros). The payment relates to the bank's earlier failure to maintain adequate anti-money laundering controls at its units in the Baltic states. SEB itself announced the settlement.

The agreement follows a review by the New York State Department of Financial Services of the customer due diligence and transaction monitoring procedures at SEB's Baltic units between 2015 and 2019.

What the regulator found

The regulator concluded that during that period the bank's Baltic operations had shortcomings in customer documentation. Money laundering risk assessments were also incorrect, and measures to mitigate those risks were insufficient.

At the same time, the department notes that SEB cooperated with the investigation and has taken steps to correct the deficiencies.

US Department of Justice

The US Department of Justice has also finished reviewing SEB's activities, but decided not to take any action against the bank. As a result, the US review of SEB's earlier measures to prevent the laundering of illegally obtained funds is complete.

About SEB

SEB operates in Sweden and the Baltic states, where it offers a broad range of financial services. It is also present in Denmark, the United Kingdom, Norway, Finland and Germany, where it focuses on corporate and investment banking services.