SEB’s comment relating to an audit by the Estonian FSA

From 26 August to 27 September 2019, the Estonian Financial Supervision and Resolution Authority (FSA) audited the activities of SEB Pank during past few years in fighting money laundering and terrorism financing. In the audit, no evidence was found that SEB would have been systematically used for money laundering or terrorism financing, however the bank has to remedy shortcomings in collecting customer data and monitoring the business relationship.

„SEB has done and will do in the future everything possible to avoid being used for unlawful purposes and our conservative strategy has been effectively implemented in the processes and systems of the bank. SEB has a continuous and very good cooperation with supervisory authorities and this is an integral part of the bank’s activities. Supervisory audits have helped us to additionally develop our processes, how to prevent the money laundering and terrorism financing”, said Allan Parik, Chairman of the Management Board of SEB Pank.

The concluded audit confirmed that SEB applies a clear business strategy and has low risk appetite in providing services to non-residents which reflects in small business volumes. In addition the audit concluded that SEB has controls and systems in place to carry out the conservative business strategy the bank has chosen. In the completed audit, the FSA pointed out the shortcomings in customers and beneficial owners’ data which were expressed from spelling errors to contradictory information on the residency declared by customers. According to FSA the data quality should be improved as it may jeopardize the timely response to risks. In addition, the completed audit identified shortcomings in the monitoring of the business relationship.

„We can assure that enhancing the quality of customer data and monitoring processes is a prioritised area at SEB, where we invest increasingly year by year. SEB has similarly to FSA zero tolerance towards shortcomings that could even theoretically increase the risk that the bank is used for unlawful purposes. Within six months, we will eliminate the shortcomings pointed out by FSA and we intend to remain among the most conservative banks in Estonia in providing services to higher risk class customer groups,”, added Allan Parik.

Additional information:

Silver Vohu
Head of Marketing and Communication Division
SEB

Phone +372 665 5393
Mobile + 372 521 1170
email: silver.vohu@seb.ee