“The Financial Supervisory Authority (FSA) estimates that the branch’s inherent risk of being misused for money laundering or financing of terrorism is normal to high in relation to the average of financial businesses in Denmark,” the watchdog said in a statement.
The FSA carried out its checks on the Danish branch of SEB Kort Bank AB in March 2018 and has just published its findings. SEB Kort Bank is a wholly-owned subsidiary of SEB.
The FSA said it was instructing the branch to ensure it gathered additional information on customers that the branch deemed associated with a high risk of money laundering or terror financing.
The watchdog said it was also instructing the branch to make sure it was in compliance with anti-money laundering legislation.
A statement from Head of SEB Kort Danmark Lars Lorenzen, provided by an SEB spokesman, said the FSA’s inspection was routine and had not detected any money laundering abuses.
“Since the inspection in March 2018 we have tightened our processes and controls in order to meet the Danish FSA’s order,” Lorenzen said.
Several European banks, including Danske Bank and Sweden’s Swedbank, are facing allegations of being involved in a Baltic money laundering scandal.