Swedbank A

Swedbank reaches agreement with OFAC

Swedbank has now reached a final agreement with the US Treasury's Office for

Foreign Assets Control (OFAC) regarding the bank's historical shortcomings. OFAC

has concluded that the transactions, which were disclosed by the bank to the

authority, constitute a violation of applicable regulations.

Swedbank has agreed to remit SEK 37 million regarding the settlement relating to

violation of OFAC regulations. The settlement concerns transactions that were

conducted by Swedbank in Latvia in 2015-2016.

The transactions, which Swedbank reported to OFAC in March 2020, consisted of

salary payments and payments that were associated with the operation of a vessel

whose owner and operator were located in Crimea, that were subject to US

economic sanctions. In total, the settlement involves 386 transactions with a

total value of USD 3.3 million.

"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" says Tomas Hedberg, Head of Special Task Force and

Deputy President and CEO, Swedbank.

The bank made a provision of SEK 40 million regarding the agreement with OFAC,

in March.

The investigations by the US Department of Justice (DoJ), US Securities and

Exchange Commission (SEC), and Department of Financial Services in New York

(DFS) are ongoing. Swedbank is holding separate discussions with these agencies

through our US legal advisors. These investigations are at different stages.

At this time, the bank cannot assess the extent of potential financial

consequences, nor when the investigations will be completed.

Contact:

Unni Jerndal ([email protected]), Senior Advisor, +46 73 092 1180

Annie Ho ([email protected]), Head of Investor Relations, +46 70 343 7815

Swedbank empowers the many people and businesses to create a better future. Our

vision is a financially sound and sustainable society. Swedbank Group is the

leading bank with over 7 million retail customers and 550 000 corporate

customers in our four home markets Sweden, Estonia, Latvia and Lithuania.

Swedbank Group is also present in other Nordic countries, the U.S. and China.

Together we make your financial life easier. Find out more: www.swedbank.com

AI Terminal