Swedbank Under New Scrutiny by Swedish Financial Regulator Over AML Compliance

New AML Probe Initiated by Swedish FSA

Swedbank is once again under investigation by Sweden's Financial Supervisory Authority (FSA), known as Finansinspektionen (FI), concerning its compliance with anti-money laundering (AML) regulations. The new probe, announced on February 20, 2026, will specifically examine whether the bank has met customer knowledge requirements, including customer due diligence measures.

The investigation period spans from December 1, 2023, to November 30, 2025. This renewed scrutiny highlights the ongoing focus of regulatory bodies on financial institutions' efforts to combat illicit financial activities.

Focus on Customer Knowledge Requirements

The core of the FSA's latest inquiry into Swedbank revolves around the bank's adherence to 'customer knowledge requirements.' This critical aspect of AML compliance ensures that financial institutions have a thorough understanding of their clients to prevent money laundering and terrorist financing. Petra Bonderud, Head of Unit for Risk Analysis, Anti-Money Laundering Supervision at Finansinspektionen, emphasized the importance of this area, stating, 'Financial crime is an international problem that threatens both society and the financial system. Having thorough knowledge of one's customers is essential for countering the risks of money laundering and terrorist financing that may exist within an organization.'

The FSA has indicated that combating money laundering and the financing of terrorism will remain a supervisory priority throughout 2026.

Historical Context of Swedbank's AML Challenges

This new investigation comes against a backdrop of significant past AML issues for Swedbank. The bank faced a substantial 4 billion SEK (approximately $386 million) fine in March 2020 from the Swedish FSA for severe deficiencies in its AML processes, particularly within its Baltic operations and Swedish activities. The investigation at that time concluded that the bank had shortcomings in its risk classification of customers and transaction monitoring.

Furthermore, Swedbank's former CEO, Birgitte Bonnesen, was convicted for misleading statements regarding the bank's AML controls in Estonia, underscoring the severity of previous compliance failures.

Ongoing Regulatory Landscape

While Swedbank has been working to address its historical shortcomings, the regulatory environment remains active. The bank recently announced the closure of investigations by the U.S. Department of Justice (DOJ) and the U.S. Securities and Exchange Commission (SEC) concerning its past AML work. However, an investigation by the New York Department of Financial Services (DFS) is still ongoing. This new probe by the Swedish FSA signifies that despite efforts to improve, regulatory scrutiny over Swedbank's AML framework continues at a domestic level.