Friday 05 April 2019 7:56 am | Updated: Monday 03 June 2019 12:22 am

Swedbank chair steps down immediately amid money laundering probe

The chair of under-fire Swedbank has decided to leave the role with immediate effect amid money laundering allegations directed against the bank.

Lars Idermark has stepped down as authorities probe allegations of money laundering in the Baltics.

“Following recent strong debate about Swedbank and questions about the bank’s control of suspicious money laundering in the Baltics, I have concluded that the media attention is not compatible with my CEO role at Sodra,” Idermark said.

“Therefore, I have decided that the best alternative is to leave the position as chair of Swedbank with immediate effect.”

He added: “It has been difficult, given the tense situation in media, to gain support for proportions and facts, and to correct direct errors.

“In addition, we must always respect bank privacy, and applicable laws and regulations that a bank must follow on the markets where it operates. This has added extra complexity to the communication aspect.”

Idermark’s departure follows the sacking of chief executive Birgitte Bonnesen last week, who will be replaced by finance chief Andres Karlsson.

Swedish broadcaster SVT said up to 40 billion Swedish krona (£3.2bn) could have been laundered through transfers between accounts at Swedbank and Danske Bank between 2007 and 2015.

Idermark called the allegations “deeply regrettable”, adding that shareholders and customers have always been his top priority.

“Finally, I want to thank all amazing and knowledgeable employees on the four home markets of the bank,” he added. “ In 2018, you together delivered the best financial result in the history of the bank. I want to thank the group executive committee and the board for fruitful cooperation. It will take some time to restore confidence.”

It follows months of scandal around money laundering at Danske's Estonian branch, which claimed the scalp of its chief executive.