Swedbank’s Former CEO Charged with Fraud Over Money-Laundering Controls in Sweden

Birgitte Bonnesen Accused of Distributing False Information

Swedish Economic Crime Authority Announces Prosecution

STOCKHOLM — Swedbank’s former CEO, Birgitte Bonnesen, faces fraud charges relating to her statements downplaying concerns about the bank’s anti-money-laundering controls in Estonia during the 2018-2019 money-laundering scandal.

• Sweden’s Economic Crime Authority (EA) prosecution: Birgitte Bonnesen is the latest high-profile figure to be implicated in the ongoing scandal.
• Previous reassurances to investors and journalists: Bonnesen sought to reassure investors and journalists in late 2018 and early 2019 about Swedbank’s anti-money-laundering procedures.
• Swedish authorities and external lawyers’ findings: Swedish authorities and external lawyers appointed by Swedbank later revealed that the bank’s anti-money-laundering regime was too lenient, enabling money laundering.

Charges against Bonnesen

• Accused of false information: The EA accused Bonnesen of knowingly or negligently distributing false information regarding Swedbank’s efforts to prevent, detect, and report suspected money laundering.
• Swedish law breach: Thomas Langrot, the lead prosecutor, explained that Bonnesen’s comments constituted a breach of Swedish law.
• Disputed charges: Bonnesen’s lawyer, Per E. Samuelson, however, disputes the charges.

Background of Swedbank’s Woes

• Expansion in Baltic states: Swedbank and other Scandinavian banks looked for opportunities to expand in Estonia.
• Concerns about fund origins and destinations: Concerns emerged about the origins and destinations of the funds.
• Baltic and home country authorities: Both banks, Swedbank and Danske Bank, were unable to give satisfactory answers to Baltic and home country authorities.
• CEO ousting and hefty fines: Both CEOs, Birgitte Bonnesen and Thomas Borgen, were ousted from their positions, and both banks faced hefty fines.

European Commission’s New Strategy to Combat Money Laundering

• Improve detection of suspicious transactions: The European Commission presented a strategy to improve the detection of suspicious transactions and activities.
• Close loopholes used by criminals: The aim is to close loopholes used by criminals to launder illicit proceeds or finance terrorist activities through the financial system.

Cover-up Evidence

• Cover-up allegations: The leading investigator noted, “there is evidence of a cover-up.”
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