Danish regulator reports Nordea Finans to police over money laundering concerns

The Danish Financial Supervisory Authority has taken the serious step of reporting Nordea Finans Danmark to the police, alleging breaches of the country's anti-money laundering legislation. This action stems from an inspection conducted in June 2023, which identified what the authority deems a "systematic deficiency" in the bank's assessment of a significant customer group issued credit cards. The core of the issue appears to be Nordea Finans Danmark's alleged failure to adequately investigate the reasons behind these credit card issuances and their intended use.

“

It is Finanstilsynet's assessment that there is a systematic deficiency.

According to the authority's statement, the bank did not sufficiently consider potential money laundering and terrorism financing risks associated with these customer relationships. The National Unit for Special Crime has been tasked with a further investigation into the company. This move by the regulator signals a firm stance against perceived laxity in financial institutions' compliance with anti-money laundering protocols.

“

Nordea Finans had sufficient knowledge of and had risk-assessed the customers, who were ordinary Danes and well-established businesses. Therefore, the police report is out of proportion.

However, Nordea Finans Danmark strongly disagrees with the supervisory authority's conclusions. The bank asserts that it possessed adequate knowledge of its customers, who are described as ordinary Danes and well-established businesses. They argue that the police report is "out of proportion" and that the customers' risk profiles and the purpose of the credit cards were properly assessed and continuously monitored. The bank also indicated that a fine proposed by the authority was "markedly out of proportion" to the alleged administrative shortcomings, relating to approximately 21,000 customer cases.

“

The group of private customers were ordinary Danes. A large part of them, for example, had bought a sofa or a bicycle on installment and in that connection also received a credit card.