Sweden’s Top Bank Takes Tough Stance on Financial Crime Prevention

Financial crime is a pervasive issue that plagues 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, has made significant strides in preventing financial crime by investing heavily in new technologies and additional resources.

Commitment to Prevention

Nordea’s commitment to fighting financial crime is reflected in its focus on continuously improving its defenses against these illegal activities. With around 2,600 colleagues dedicated solely to preventing financial crime, Nordea is taking a proactive approach to staying ahead of emerging risks.

“We do our utmost to ensure that our resources, products, and services are not used to facilitate financial crime or any other illegal activities,” says Karen Tyler, Head of Group Financial Crime Prevention at Nordea. “We have recently recruited more financial crime specialists to strengthen the area.”

The Scope of Financial Crime

Financial crime encompasses a wide range of activities, from basic theft and fraud committed by individuals to large-scale operations organized by criminal networks that transcend national borders. These activities often have serious consequences for both individuals and societies.

Investment in Prevention

To combat this issue, Nordea has spent over 1.5 billion euros on financial crime prevention since 2015. The bank also trains all employees in financial crime risks and its program on a regular basis. In 2022, Nordea added an investment of 50 million euros to further increase its financial crime prevention capabilities.

Monitoring Transactions

The bank’s efforts involve monitoring more than 3 billion transactions every year, making it essential to invest heavily in financial crime prevention tools. Nordea screens against relevant sanctions lists as part of the customer onboarding process and subsequently on an ongoing basis. The bank also identifies any unusual activities, patterns, or irregularities, triggering internal alerts and investigations.

“We do not accept being used for money laundering or other financial crime,” says 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; and internal audit. Each line plays a critical role in the bank’s financial crime risk management and internal controls.

Conclusion

In conclusion, Nordea’s commitment to fighting financial crime is unwavering, and the bank continues to invest heavily in prevention tools and technologies to stay ahead of emerging risks. With its robust defenses in place, Nordea is well-positioned to protect its customers, reputation, and sustainability.