Resolution Clears Path for Bank Amidst Broader European Money Laundering Scandal
Nordea Bank Abp has agreed to pay $35 million to resolve a U.S. investigation into its past anti-money laundering practices. This settlement, announced on Tuesday, marks the end of a probe by the New York State Department of Financial Services (DFS) into the bank’s anti-money laundering measures between 2008 and 2019.
The fine addresses deficiencies in Nordea’s anti-money laundering safeguards during this period. This development is part of a broader investigation into European banks linked to money flows from the former Soviet Union to the West. Notably, Danske Bank A/S and Swedbank AB have also been implicated in similar scandals, with Danske Bank agreeing to a $2 billion settlement in 2022.
Nordea stated that the fine will not materially affect its financial position and will be recorded in its third-quarter financials. The bank emphasized that this resolution concludes the DFS investigation, with no other ongoing U.S. probes related to past financial crime prevention issues.
Nordea’s shares saw little change following the announcement, closing 0.6% higher in Helsinki. However, the bank continues to face scrutiny in Denmark, where it is under investigation for anti-money laundering lapses from 2012 to 2015. This Danish investigation, the largest of its kind in the country, examines about 26 billion Danish kroner in transactions and could result in a significant fine. Nordea has contested the legal conclusions drawn by Danish authorities.
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