The New York State Department of Financial Services has fined Swedbank $50 million to settle an investigation into its compliance with New York banking law and its failure to disclose ties to Mossack Fonseca in the Panama Papers case.
New York State Department of Financial Services Fines Swedbank $50 Million
Kaitlin Asrow, Acting Superintendent of the New York State Department of Financial Services (DFS), announced on 2026-07-16 that Swedbank AB and its New York branch have agreed to pay a $50 million fine as part of a consent order, resolving the department's investigation into Swedbank's compliance with New York banking law and its failure to cooperate adequately with information requests. The settlement follows an investigation by the Department of Justice (DOJ) into the bank's relationships linked to the "Panama Papers" leak.（Source: New York State Department of Financial Services consent order, published: 2026-07-16.）
According to Swedbank, the settlement means that all investigations into the bank's historical compliance issues have now been concluded. The investigations began in 2019 and were conducted across Sweden, Estonia and the United States, covering the bank's anti-money laundering and counter-terrorist financing efforts between 2007 and 2019, as well as its information disclosure.（Source: Swedbank announcement, published: 2026-07-16.）
Regulatory Backdrop: Rooted in the 2016 "Panama Papers" Leak
The 2016 "Panama Papers" leak exposed millions of documents from the law firm Mossack Fonseca, revealing that some financial institutions had failed to fulfil their legal and compliance obligations, including those relating to money laundering and offshore activities. DFS subsequently reviewed licensed institutions connected to the law firm, with Swedbank among those under review.
Kaitlin Asrow, Acting Superintendent of DFS, commented:
“Financial institutions have a statutory obligation to comply with New York laws and regulations designed to protect the integrity of the financial system. The Department will hold institutions accountable, ensure they meet their obligations, and cooperate fully with the Department's supervisory work.”
Two Information Requests and Concealment
DFS issued information requests to Swedbank on two occasions, in 2016 and 2018, seeking details of its relationships with Mossack Fonseca and its affiliated banks, entities and individuals. DFS subsequently found that the bank had concealed key information in relation to these requests. In its response to the first information request, DFS determined that Swedbank had the following failings:
Failure to report exposures outside the New York branch.
Failure to acknowledge enquiries from European regulators.
Concealment of information relating to its Baltic subsidiaries in Latvia, Lithuania and Estonia, including the connections between certain clients and Mossack Fonseca.
Failure to inform DFS that clients of Swedbank's Estonian branch used Mossack Fonseca as a registered agent.
Failure to inform DFS that individuals named in the "Panama Papers" leak were Swedbank clients or connected to clients.
Continued Concealment in Subsequent Requests
DFS determined that Swedbank continued to conceal information when responding to the department's subsequent requests. In its communications with DFS, the bank created the impression that it would review its Baltic subsidiaries to obtain the relevant information. The department subsequently found that Swedbank had deliberately excluded its Baltic subsidiaries from the information provided to the department, in order to avoid disclosing its numerous connections to Mossack Fonseca, and had failed to disclose adverse findings by European regulators. According to the department's findings, the bank's employees acknowledged that the aforementioned information should have been included in the information submitted to the department.
Penalty Elements and Investigation Timeline at a Glance
| Item | Content | Entities / Jurisdictions Involved | Date |
|---|---|---|---|
| Fine amount | $50 million civil penalty | Swedbank and its New York branch | 2026-07-16 |
| Origin of the leak | "Panama Papers" leak | Mossack Fonseca | 2016 |
| First information request | DFS sought details of relationships | Baltic subsidiaries (Latvia, Lithuania, Estonia) | 2016 |
| Second information request | DFS's subsequent request, met with continued concealment | Estonian branch and others | 2018 |
Response from Swedbank
Göran Persson, Chair of Swedbank's Board of Directors, said that all investigations into the bank's legacy issues have now been concluded, allowing the bank to devote its full attention to client service, business development and shareholder value creation. Jens Henriksson, President and Chief Executive Officer of the bank, said that , adding that the bank can now put the matter behind it. According to the bank, the amount payable to DFS will be recognised as a cost in the third quarter of 2026.（Source: Swedbank announcement, published: 2026-07-16.）
Questions Relating to the Swedbank DFS Fine
Why did the New York State Department of Financial Services fine Swedbank?
DFS determined that Swedbank had failed to comply with New York banking law and, in its two information requests, had failed to cooperate adequately and had concealed key information relating to Mossack Fonseca and its Baltic subsidiaries. On this basis, it imposed a $50 million fine on 2026-07-16.
How is this fine connected to the "Panama Papers"?
The 2016 "Panama Papers" leak exposed a large volume of documents from the law firm Mossack Fonseca. DFS subsequently reviewed licensed institutions connected to the firm, with Swedbank among them, and this fine stems from the bank's concealment of information during that review.
What information did DFS determine Swedbank had concealed?
DFS determined that the bank had failed to report exposures outside the New York branch, failed to acknowledge enquiries from European regulators, and concealed information relating to its Baltic subsidiaries in Latvia, Lithuania and Estonia, including connections between certain clients and Mossack Fonseca, as well as the firm's use as a registered agent.
When did DFS issue its information requests?
DFS issued information requests to Swedbank on two occasions, in 2016 and 2018, seeking details of its relationships with Mossack Fonseca and its affiliates. The bank was found to have concealed information in both requests.
What does this settlement mean for Swedbank?
According to Swedbank, the settlement with DFS concludes all investigations into the bank's historical compliance issues. The relevant amount will be recognised as a cost in the bank's third quarter of 2026.
