STOCKHOLM (Reuters) – The European Central Bank (ECB) is looking into Swedbank’s Estonian operations, Swedish daily Dagens Nyheter reported on Wednesday, citing an undisclosed source.
The ECB wants to know how well Swedbank’s Estonian subsidiary kept itself informed about its customers, the paper said, citing the source.
The newspaper also reported, citing the Swedish financial supervisory authority, that it had shared with the ECB a report commissioned by Swedbank on its Baltic operations.
The Swedish FSA and the ECB declined to comment when approached by Reuters.
Sweden is not part of the eurozone but Estonia is and that means Swedbank’s Estonian subsidiary falls under ECB supervision.
Swedbank has come under heavy criticism from politicians and investors over allegations that its Baltic operations processed billions of dollars of transactions allegedly linked to Russian money laundering.
The scandal has led to Swedbank’s CEO and chairman leaving and the launch of several regulatory investigations into the bank.
Separately, business daily Dagens Industri (DI) cited FSA deputy director general Martin Noreus as saying that the authority was expanding its joint probe with Baltic counterparts into money laundering risks in the region to include Swedish bank SEB’s operations in the region.
An FSA spokesman said the DI report was correct, declining to comment further.
Swedbank and SEB are the biggest banks in the Baltic region.
(Reporting by Anna Ringstrom, additional reporting by Helena Soderpalm and by Francesco Canepa in Frankfurt; Editing by Keith Weir)