Estonian Prosecutor’s Office Closes Money Laundering Investigation against Swedbank Estonia and Executives
Despite suspicions of money laundering valued at over €100 million, the State Prosecutor’s Office in Estonia has closed a criminal investigation into Swedbank Estonia and its former executives. The following individuals were under investigation: Priit Perens, Robert Kitt, Ulla Ilisson, Heiki Raadik, Vaiko Tammeväli, Rait Pallo, Kaie Metsla, Toomas Tuuling, and Aleksei Averson.
Insufficient Evidence for Money Laundering Prosecution
Prosecutor General Andres Parmas explained at a press conference that the proceedings needed to be closed due to insufficient evidence regarding the criminal origin of the funds involved. Under Estonian law, a money laundering prosecution is not possible without evidence of a proven predicate offense.
Investigations into Ukrainian Crime Funds and Alleged Russian Fraud
Throughout the criminal proceedings, the Central Criminal Police examined the circumstances of two groups of customers. The first investigation focused on Ukrainian crime funds, but Ukrainian law enforcement confirmed that the crime-related money did not reach Estonia. A second investigation into funds related to an alleged fraud in Russia yielded results, with Russian enforcement authorities claiming that four billion Rubles (€81 million) of fraudulent money was illegally exported from Russia and laundered through Swedbank Estonia.
Potential Overlap with International Evidence and Swedbank’s Deficiencies
The investigation revealed a potential overlap with international evidence gathered in the case. Swedbank had also been found to have deficiencies in their money laundering prevention processes. The bank allegedly:
- Concealed the true beneficiaries of 74 high-risk customers
- Allowed intra-bank money circuits
- Converted and transferred money without proper documentation
- Provided misleading information to corresponding banks and the Financial Intelligence Unit
Russian Proceedings and Swedbank’s Compliance with Anti-Money Laundering Rules
The defense was given the opportunity to present objections and arguments. However, the potential politically biased nature of the Russian proceedings raised concerns and required further verification. Prosecutor Toivo Nurm acknowledged several shortcomings in Swedbank’s compliance with anti-money laundering rules during the period under investigation.
Swedbank’s Readiness to Move Forward
Swedbank cooperated fully with the authorities during the investigation. Despite the deficiencies and anti-money laundering requirements breaches, they have expressed their readiness to leave historical shortcomings behind. Tomas Hedberg, head of the special task force and vice president of Swedbank, stated, “With the decision of the Estonian prosecutor, we can finally close this chapter.”