Swedish Bank Invests Heavily in Financial Crime Prevention and Deterrence

Financial crime is a significant threat to society, often linked to illegal activities such as bribery, corruption, money laundering, and terrorist financing. In Sweden, Nordea, one of the country’s largest banks, is committed to combating financial crime and protecting its customers.

A Strong Commitment to Prevention

To achieve this goal, Nordea has invested heavily in new technologies and additional resources to strengthen its defense against financial crime. The bank has recruited more financial crime specialists, with around 2,600 colleagues now dedicated solely to preventing financial crime.

“We do our utmost to ensure that our resources, products, and services are not used to facilitate financial crime or any other illegal activities,” said Karen Tyler, Head of Group Financial Crime Prevention at Nordea. “We have a strong commitment to continuously improve our defense against financial crime and adapt to new and emerging risks in the external environment.”

The Many Forms of Financial Crime

Financial crime can take many forms, from basic theft or fraud committed by individuals to large-scale operations organized by criminal networks spanning national borders. These activities are often linked to serious social and economic consequences for both individuals and societies.

A Comprehensive Approach

To combat this threat, Nordea has invested over 1.5 billion euros in financial crime prevention since 2015. The bank also trains all employees on financial crime risks and its program on a regular basis. In 2022, an additional 50 million euros was invested to further increase financial crime prevention capabilities and make the IT infrastructure even more resilient.

Monitoring Transactions and Detecting Potential Illegal Activities

Nordea’s efforts are focused on monitoring transactions and detecting potential illegal activities. The bank screens against relevant sanctions lists as part of the customer onboarding process and subsequently on an ongoing basis. It also identifies unusual activities, patterns, or irregularities, triggering internal alerts and investigations if necessary.

“We do not accept being used for money laundering or other financial crime,” emphasized Tyler. “Nordea takes its share of responsibility to society and customers seriously, and over the years we have built strong defenses to prevent our products and services from being used for unlawful purposes.”

Three Lines of Defense

To further strengthen its defenses, Nordea has established three lines of defense: daily risk management, operations, and development; compliance and risk functions; and internal audit. Each line plays a critical role in financial crime risk management and internal controls.

A Commitment to Prevention Unwavering

Nordea’s commitment to preventing financial crime is unwavering, with the bank reporting a high number of cases to relevant authorities every year. As the bank continues to invest in new technologies and resources, it remains dedicated to protecting its customers and society from the threat of financial crime.