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BANK

Swedish bank charges on the rise

Bank charges in Sweden have increased by 4.9 percent over the last year, according to a study by consultancy firm Capgemini.

Banks in Sweden have bucked an international trend, with charges globally dropping by one percent over the same period.

Capgemini’s Christian Fegler believes that a lack of competition and a passive customer base may go some way towards explaining developments in Sweden.

“In other markets foreign actors have come in and pushed down prices but that hasn’t happened in Sweden,” he told Dagens Nyheter.

Another explanation may be Swedes’ increased use of internet banking.

“It then becomes possible to raise costs for different manual transactions as these only affect a small proportion of customers,” said Fegler.

Kicki Westerståhl, head of the Swedish Consumers’ Banking & Finance Bureau agreed with Fegler’s assessment that the Swedish banking sector was in need of greater competition.

“Competition in banking is not working as it should,” she told Dagens Nyheter.

BANK

Police to investigate Nordea bank over money laundering

Danish police will investigate the Swedish bank Nordea after a year-long probe by regulators into money laundering led to "criticism" of its procedures, the bank said Friday.

Police to investigate Nordea bank over money laundering
Photo: Marcus Ericsson / TT

Detectives will examine how money laundering rules were followed at the bank's Danish subsidiary and could result in “sanctions”, Nordea said in a statement.

“We realize that we initially underestimated the complexity and the time it takes to change our procedures,” said Nordea chief executive Casper von Koskull.

The bank added that 850 Nordea employees are currently involved in the fight against money laundering which the bank plans to increase to 1,150 by the end of the year.

In May 2015 the bank was fined 50 million kronor (€5.4 million euros) – the maximum possible – by Swedish regulators who accused Nordea of “not following money laundering rules for several years” and failing to “evaluate the risks of (doing business with) certain clients”.