SHARE
COPY LINK

BANK

New Swedish bank crisis law in two years

Sweden's Minister for Financial Market Mats Odell said on Tuesday that new rules to clarify how and when the Swedish government can take control of a domestic bank in financial trouble should come into effect in 2010.

New Swedish bank crisis law in two years

Prime Minister Fredrik Reinfeldt earlier in the day told reporters he saw no need to speed up the proposal in the light of the current market turmoil.

The proposed legislation was likely to be put forward within a month, Mats Odell told reporters.

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

The law has been under discussion for several years.

The proposal has its roots in the Swedish banking crisis of the early 1990s when current Riksbank head Stefan Ingves was forced to negotiate bailouts in the absence of any formal legal framework.

At the time a decision was taken that a set of rules should be developed and a committee on banking law put forward a proposal to the former Social Democratic-controlled government in 2000.

AFX/The Local

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”.