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BANK

Sweden plans new bank crisis law

Sweden plans to introduce new rules by year-end to clarify how and when the government would take control of a domestic bank facing financial problems, a finance ministry adviser told Reuters on Wednesday.

“The state will explain to the market that these are the conditions under which the state will go in and take over banking operations which are insolvent or risk falling into insolvency,” said Stefan Svanström, a political adviser at Sweden’s finance ministry.

“There is currently not a framework which outlines which authority should give support or when or how it should happen,” Svanström told Reuters.

He said the proposal would be put forward between the budget later this month and Christmas.

Sweden’s central bank governor, Stefan Ingves, had highlighted earlier this year the need for a stronger regulatory framework in Sweden to manage a crisis in its financial system.

The plan also follows action by authorities in the United States and Britain in recent months to prop up ailing financial institutions to prevent wider contagion in markets.

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”.