Nordea Bank Settles $35 Million Fine

By Jonathan Stempel

Overview

Nordea Bank will pay a $35 million civil fine following charges from New York’s financial regulator regarding inadequate anti-money laundering practices. This settlement is related to issues revealed in the Panama Papers scandal.

Key Points

• Regulatory Findings: New York State Financial Services Superintendent Adrienne Harris criticized Nordea’s lack of due diligence, recognizing a “critical” risk of oversight failures.
• Acknowledgment of Shortcomings: Jamie Graham, Nordea’s Chief Compliance Officer, admitted the bank historically underestimated the complexities in combating financial crime.
• High-Risk Transactions: Investigations linked Nordea to billions in high-risk transactions between 2008 and 2019, including activities tied to the Russian and Azerbaijani Laundromats.
• Consistent Issues: The consent order highlights shortcomings in Nordea’s anti-money laundering procedures, particularly at its branches in Denmark, Latvia, Lithuania, and Estonia.

Background

The Panama Papers, published in 2016, exposed numerous offshore accounts tied to prominent figures, based on leaks from the law firm Mossack Fonseca.

Financial Impact

Nordea plans to record the $35 million fine as a charge in its third-quarter financial results.