Swedbank has reached a settlement deal with the US government to pay a fine over transactions with a Crimea-based shipowner.
The Swedish banking group, which has a major presence in Baltic nations, said the agreement will see it pay SEK 37m ($3.45m) in fines over what it described as its “historical shortcomings” that violated US regulations.
The US Treasury Department’s Office of Foreign Asset Control (Ofac) concluded that transactions disclosed by Swedbank to Washington were in violation of sanctions rules, the company said.
The settlement deal is focused on transactions in Latvia between 2015 and 2016, after Russia’s annexation of Crimea from Ukraine sparked sanctions by Washington.
The 386 transactions involved in the settlement agreement involved salary payments and costs associated with a vessel whose owner and operator were located in Crimea.
Stockholm-headquartered Swedbank reported the transactions, worth $3.3m in total, to Ofac in March 2020.
“Swedbank takes the historical shortcomings seriously, and has learned from them in the comprehensive work that has been performed to strengthen internal governance and control,” said Swedbank deputy chief executive Tomas Hedberg.
Swedbank, whose shares are listed on the Nasdaq Stockholm, had set aside a provision of SEK 40m in March as US authorities investigated.
Though Swedbank has reached a deal with Ofac, investigations by the US Department of Justice, US Securities and Exchange Commission and the New York State Department of Financial Services continue.
“At this time, the bank cannot assess the extent of potential financial consequences, nor when the investigations will be completed,” the bank said.
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