“First of all, Estonia, Latvia and Lithuania are together with Sweden home markets to Swedbank. We run full banking operations and focus on domestic customers and business. As the market leader we have continuously worked with AML and have a systematic approach to assure that we detect suspicious transactions and business activities. In these efforts we work closely with authorities, regulators as well as with correspondent banks. We have always had zero tolerance against money laundering in all markets where we operate. As the market leader we have had a continuous dialogue with the governments and the regulators to strengthen the financial system and infrastructure, we see this as part of our responsibility.

With regards to non-resident customers, Swedbank has a relatively low share it represents less than 1.5% of all of Swedbank´s customers in the Baltic countries. However, in payment transactions is where money laundering is detected and this is where the focus should be.

The ability to detect and act on suspicious transactions is key. The focus of our AML efforts is to secure systems and processes in order to scrutinize transactions and detect suspicious transactions rather than solely focus on the residency of the customer. Residency is part of the KYC and on-boarding process and Swedbank’s policy is to bank customers with clear local business ties.

Based on our approach we have throughout the years reacted on all signals, from our own channels as well as from external parties. We are not USD clearer ourselves in those markets. There are currently no ongoing investigations into our bank from any of our regulators concerning AML-practices.

Despite the negative news flow on AML related issues in the Baltic countries, we welcome the development we have seen in recent years, where national and international authorities and politicians have been working intensively to increase transparency in their respective countries. We remain confident that the financial system in each country is sufficiently robust and the economies are strong and diversified enough to manage while the various measures are firmly being established and implemented.”

Following the publication of the Bloomberg article the Estonian central bank published a press release that can be found here: https://www.eestipank.ee/en/press/bloomberg-has-mistaken-cross-border-payments-non-resident-flows-03102018

For more information:

Gregori Karamouzis, Head of Investor Relations, tel +46 727406338
Josefine Uppling, Head of Press Office, tel + 46 76 114 54 21