Former Swedbank CEO Birgitte Bonnesen Convicted of Gross Swindling in Money Laundering Scandal
Birgitte Bonnesen, the former CEO of Swedbank, has been found guilty of gross swindling by the Svea Court of Appeal, marking a significant turn in a prolonged legal battle stemming from a massive money laundering scandal connected to the bank. Her lawyer, Per Samuelsson, expressed his disbelief over the conviction, stating he intends to file an appeal.
This ruling overturns a previous decision made by a district court in 2023 that acquitted Bonnesen. The case has its origins in allegations made in 2019 by Swedish public service broadcaster SVT, which claimed that Swedbank facilitated at least 40 billion kronor (approximately 44 billion USD) in dubious and high-risk transactions linked to the Baltic region, primarily Estonia. These revelations sparked a dramatic decline in the bank's share price, leading to Bonnesen's dismissal shortly thereafter.
Following the scandal, Sweden's financial regulatory authority imposed a hefty fine of four billion kronor on Swedbank, urging the institution to comply rigorously with anti-money laundering regulations.
The charges against Bonnesen stated that she had either intentionally or through gross negligence provided false or misleading information regarding the measures the bank had claimed to undertake to mitigate money laundering risks. In its statement, the appeal court indicated that Bonnesen disseminated misleading statements during interviews with Svenska Dagbladet and the news agency TT, especially around the bank's third quarterly report for 2018. The court emphasized that these statements incorrectly suggested the absence of suspicious money laundering activities linked to another bank's operations in Estonia.
The judges argued that such misinformation was likely to mislead stakeholders regarding Swedbank's financial standing, potentially resulting in financial losses.
Additionally, prosecutors accused Bonnesen of illicitly revealing insider information when she alerted major stakeholders about an investigative documentary regarding the bank. However, the appeals court determined that the information she shared was too vague to qualify as insider information, leading to her acquittal on that particular charge, consistent with the earlier district court ruling.
As this legal saga unfolds, Bonnesen's conviction amidst the fallout of Swedbank's controversies raises critical questions about corporate governance and accountability within the banking sector. The outcome of her appeal will be closely watched as it has implications not only for Bonnesen but for the banking industry and regulatory frameworks in Sweden and beyond.
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