Swedbank has now reached a final agreement with the US Treasury's Office for
Foreign Assets Control (OFAC) regarding the bank's historical shortcomings. OFAC
has concluded that the transactions, which were disclosed by the bank to the
authority, constitute a violation of applicable regulations.
Swedbank has agreed to remit SEK 37 million regarding the settlement relating to
violation of OFAC regulations. The settlement concerns transactions that were
conducted by Swedbank in Latvia in 2015-2016.
The transactions, which Swedbank reported to OFAC in March 2020, consisted of
salary payments and payments that were associated with the operation of a vessel
whose owner and operator were located in Crimea, that were subject to US
economic sanctions. In total, the settlement involves 386 transactions with a
total value of USD 3.3 million.
"Swedbank takes the historical shortcomings seriously, and has learned from them
in the comprehensive work that has been performed to strengthen internal
governance and control" says Tomas Hedberg, Head of Special Task Force and
Deputy President and CEO, Swedbank.
The bank made a provision of SEK 40 million regarding the agreement with OFAC,
in March.
The investigations by the US Department of Justice (DoJ), US Securities and
Exchange Commission (SEC), and Department of Financial Services in New York
(DFS) are ongoing. Swedbank is holding separate discussions with these agencies
through our US legal advisors. These investigations are at different stages.
At this time, the bank cannot assess the extent of potential financial
consequences, nor when the investigations will be completed.
Contact:
Unni Jerndal (unni.jerndal@swedbank.com), Senior Advisor, +46 73 092 1180
Annie Ho (annie.ho@swedbank.com), Head of Investor Relations, +46 70 343 7815
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