Swedbank fires CEO and financial director of Estonian operations following money laundering allegations

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Swedbank has ousted the chief executive and finance director of its Estonian operations as part of its internal investigation into extensive money laundering allegations against Sweden’s oldest bank in the Baltics, the FT reports.

The bank, which has already replaced its chief executive and chairman at group level, gave no specific reason for replacing and suspending Estonian chief executive Robert Kitt and chief financial officer Vaiko Tammevali and no update on what its internal probe has found.

“Thedecision is a consequence of the ongoing internal investigation. We are fully committed to the Estonian market and to all our employees, customers and other stakeholders,” said Charlotte Elsnitz, head of Baltic banking in a statement late on Monday night.

The ousting of its two most senior managers in Estonia further increases the problems for the largest bank in the Baltic region over an ever-increasing money laundering scandal. Swedbank is already facing multiple enquiries from US regulators over the scandal in which €135bn of high-risk, non-resident money flowed through its Estonian branch over a decade, according to an internal report seen by Swedish broadcaster SVT.

Via FT

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