Reported by PYMTS

Nordea Bank Abp has reached a settlement with the New York State Department of Financial Services (DFS) after the regulator determined that the bank had compliance failures and failed to conduct proper due diligence of its correspondent bank partners. 

The bank entered into a consent order with DFS and agreed to pay $35 million in penalties, the DFS said in a Tuesday (Aug. 27) press release.

DFS investigated Nordea after the 2016 Panama Paper leak and found that the bank had anti-money laundering (AML) safeguards at its former Baltic branches that failed to adequately compensate for the increased risk level, failed to properly implement compliance initiatives, formed relationships with high-risk banking partners and had an inadequate transaction monitoring system, according to the release.

Read full report: https://www.pymnts.com/legal/2024/nordea-reaches-settlement-with-new-york-dfs-over-compliance-failures/