TALLINN (Reuters) – Despite tougher regulation there are clients in the Estonian banking system who are unacceptable and some banks will be put on a detailed monitoring plan, the Estonian financial watchdog said on Wednesday after conducting a review of the sector.
“Despite the implementation of know-your-customer measures there are clients who are not acceptable for the Estonian financial system,” Andre Nomm, board member at Estonia’s Financial Supervisory Authority, told a news conference.
The FSA initiated a special review of Estonian banking system after Danske Bank said last year some 200 billion euros (172.30 billion pounds) of suspicious money had moved through its Estonian branch.
Since then, reports have also linked Swedbank – the largest bank in the country – to suspect transactions.
(Reporting by Tarmo Virki, Writing by Johan Ahlander; Editing by Simon Johnson)