US Justice Department Closes Swedbank Money-Laundering Investigation
The US Department of Justice has officially closed its investigation into Swedbank AB. This decision comes without any enforcement action against the Swedish financial institution. The move brings a nearly seven-year money-laundering probe significantly closer to its conclusion.
Ongoing Scrutiny from New York Regulators
Despite this development, Swedbank confirmed that an investigation by the New York Department of Financial Services remains active. The bank issued a statement on Wednesday acknowledging the ongoing regulatory review.
Tomas Hedberg, Swedbank's head of special task force and deputy chief executive officer, commented on the closure. "With this information we are placing another investigation of historical shortcomings behind us," he stated in the bank's official release.
SEC Also Concluded Probe Without Action
This follows a similar outcome from the Securities and Exchange Commission in September. The SEC concluded its own investigation into Sweden's oldest bank without taking further action. That probe, launched in 2019, focused specifically on Swedbank's past failures related to anti-money laundering and counter-terrorism financing.
The SEC examination also scrutinized shortcomings in how the bank disclosed information concerning its Baltic branches. These disclosures became a central issue in the broader scandal.
Background of the Baltic Money-Laundering Scandal
The decision represents a crucial step for Swedbank as it attempts to move beyond years of intense scrutiny. The bank's handling of anti-money-laundering controls in its Baltic operations has been under investigation since the scandal first emerged.
Several Nordic lenders found themselves entangled in what became known as the $230 billion Estonian money-laundering affair. This massive financial scandal spanned from 2007 to 2015. Swedbank and Danske Bank A/S were among the primary institutions involved.
At the heart of the controversy was the accusation that these banks processed billions of dollars in suspicious funds originating from the former Soviet Union. The scale of the alleged money laundering shocked the financial world and led to multiple investigations across different jurisdictions.
Previous Penalties and Legal Consequences
Swedbank, which ranks as Sweden's second-largest bank by market value, faced substantial consequences even before the US investigations concluded. Swedish authorities imposed a significant fine of 4 billion Swedish kronor on the bank in 2020. This penalty was for clear breaches of anti-money-laundering regulations.
The situation grew more complicated for Swedbank when former Chief Executive Officer Birgitte Bonnesen faced legal action. A Swedish court found her guilty in 2024 of disseminating misleading statements to the media regarding the scandal. This conviction added another layer of complexity to the bank's efforts to resolve the matter.
In June, Bonnesen received the right to appeal her prison sentence of 15 months. This legal process continues separately from the regulatory investigations into the bank itself.
Path Forward for Swedbank
The closure of the US Department of Justice investigation represents a significant milestone for Swedbank. While the New York Department of Financial Services continues its review, the bank can now focus on resolving this remaining regulatory matter.
Financial analysts observe that drawing a definitive line under the years of scrutiny remains challenging. The bank must demonstrate improved compliance systems and regain full trust from regulators and customers alike. The Baltic operations, once a source of significant profit, now require particularly careful oversight and transparent reporting.
The broader banking industry continues to watch these developments closely. The case has highlighted the importance of robust anti-money-laundering controls, especially for institutions operating across international borders. Regulatory bodies worldwide have increased their focus on financial crime prevention in the wake of such high-profile scandals.
