The international law firm Clifford Chance has revealed in a recent report fundamental Anti-Money Laundering (AML) failings by Swedbank in its Baltic subsidiaries. The report published on 23rd March 2020, was mandated by the Swedish bank in response to allegations that it handled $155 Billion in suspicious transactions pertaining to foreign based customers who had previously been offboarded by other financial institutions, using local Baltic subsidiaries of the bank. 
Failings Highlighted In the Report?
High-risk customers were on-boarded without obtaining the required documentation regarding ultimate beneficial owners (UBO’s), such as, proof of source of funds, legitimate reasoning for the account being set up;
Swedbank failed to identify complex ownership and identify ownership structures through tax havens and other known jurisdictions which do not have strong transparency laws;
Senior management failed to establish clear and coherent AML policies and procedures within the Bank. There was a systemic lack of understanding pertaining to the risk posed by high risk, non-resident customers to the bank; and
Finally, such red flags were raised and never addressed, allowing an environment conducive to money laundering.