Former Swedbank CEO sentenced to 15 months in prison for gross fraud.

THE FORMER CEO of Swedbank was today (Tuesday) jailed for 15 months by a Swedish appeal court for money laundering offences. The court found Birgitte Bonnesen guilty of gross fraud over her handling of anti-money laundering protocols in Estonia.

The case relates to the Danske Bank money laundering scandal [see below], and the shock decision overturns a first-instance acquittal of the former CEO by a lower court.

Prosecutors had accused Bonnesen of giving misleading information to shareholders and the public – intentionally or through negligence – on the bank’s measures to prevent, uncover and report suspicions of money laundering in Estonia.

Between 2016 and 2019

• Bonnesen was CEO of Swedbank.

Between 2007 and 2015,

• €800 billion of suspicious transactions flowed from Estonian, Russian, Latvian and other sources through the Estonia-based bank branch of Denmark-based Danske Bank.
• Swedish media reported at the time that at least 40 billion Swedish crowns (€3.5 billion) had been transferred between accounts at Swedbank and Danske in the Baltics  

In February 2019,

• It was revealed that Swedbank was under investigation by Estonian authorities due to suspicious transactions through Danske Bank.

In March 2019.

• Ms Bonnesen, the chief executive of Swedbank at the time, was fired
• Swedbank was subsequently fined a record €350 million by Swedish and Estonian regulators.

In 2023,

• A district court in 2023 found her not guilty of all charges. Bonnesen, who was CEO in 2019 when a money-laundering scandal involving Swedbank’s Baltic business erupted, has denied the charges, and
• The company said it was no longer under investigation regarding money laundering and suspected criminal activities.

The Danske Bank money laundering scandal

• The Danske Bank money laundering scandal is one of the largest financial scandals in history.
• It came to light in 2017-2018, revealing that around €200 billion of suspicious transactions flowed through the Estonian branch of Danske Bank from 2007 to 2015.
• These transactions involved funds from various countries, including Russia, Latvia, and Estonia

Key points of the scandal include:

• Scale: Approximately €200 billion in suspicious transactions
• Origins: The funds came from multiple sources, including Russia, Latvia, and Estonia
• Duration: The illicit activities spanned from 2007 to 2015
• Consequences: Danske Bank faced significant legal and financial repercussions, including a guilty plea to fraud charges in the U.S. and a $2 billion forfeiture

The scandal highlighted severe deficiencies in the bank's anti-money laundering controls and led to the resignation of its CEO, Thomas Borgen

Source:  

1. Danske Bank money laundering scandal - Wikipedia. https://en.wikipedia.org/wiki/Danske_Bank_money_laundering_scandal.
2. Danske Bank Pleads Guilty to Fraud on U.S. Banks in Multi-Billion .... https://www.justice.gov/opa/pr/danske-bank-pleads-guilty-fraud-us-banks-multi-billion-dollar-scheme-access-us-financial.
3. Danske Bank boss quits over €200bn money-laundering scandal. https://www.bbc.co.uk/news/business-45571744.
4. SEC Charges Danske Bank with Fraud for Misleading Investors about Its .... https://www.sec.gov/newsroom/press-releases/2022-220.
5. https://uk.finance.yahoo.com/news/former-swedbank-ceo-bonnesen-sentenced-121146920.html)
6. https://www.amlintelligence.com/2024/09/breaking-former-swedbank-ceo-bonnesen-jailed-over-handling-of-money-laundering/).