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OIL SPILL

‘Ethical’ Nordea funds dump BP holdings

Nordea's committee for responsible investment decided on Friday to divest its holdings in BP in all of its 'ethical' profile funds.

'Ethical' Nordea funds dump BP holdings

The committee added that it has agreed that all other Nordea funds will postpone investments in BP until the British firm has evaluated its systematic risk management. The decision will have a direct impact on about 20 Nordea funds sold in the Nordic countries that have invested in BP.

“The environmental disaster in the Gulf of Mexico is an extraordinary situation given the size of the oil spill, BP’s weak reaction, the initiation of a criminal investigation against the company and the risk of further accidents,” said Sasja Beslik, head of Nordea’s responsible investments and governance (RIG) group in a statement.

The committee justified its decision because BP did not follow its own safety and environmental regulations, according to the information available, and had failed to disclose information and was not explicit about the handling of similar activities from a safety and environmental standpoint.

Nordea’s RIG group works with a thorough analysis of oil and gas companies to identify systemic safety and environmental risks associated with deep-sea drilling.

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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”.