Research Update: Sweden-Based Bank SEB Affirmed At 'A+/A-1' Despite Allegations Of Money Laundering In Estonia; Outlook Stable

On Nov. 26, SEB published historical information of transactions with nonresident customers of its Estonian subsidiary following increased media scrutiny over its potential involvement in money laundering. Available information suggests the flows of funds of potentially high-risk customers in Estonia are comparatively lower than at peers in the Baltics and that they declined from 2008-2009. So far, the published data does not indicate severe control or governance deficiencies, and we expect several anti-money-laundering-related reviews by Swedish and Estonian regulators will yield more information in 2020. At this stage, we are affirming our 'A+/A-1' long and short-term ratings on SEB. The outlook is stable because we expect SEB's capitalization will remain robust, and the bank will continue building over its cushion

...- On Nov. 26, SEB published historical information of transactions with nonresident customers of its Estonian subsidiary following increased media scrutiny over its potential involvement in money laundering. - Available information suggests the flows of funds of potentially high-risk customers in Estonia are comparatively lower than at peers in the Baltics and that they declined from 2008-2009. - So far, the published data does not indicate severe control or governance deficiencies, and we expect several anti-money-laundering-related reviews by Swedish and Estonian regulators will yield more information in 2020. - At this stage, we are affirming our 'A+/A-1' long and short-term ratings on SEB. - The outlook is stable because we expect SEB's capitalization will remain robust, and the bank will continue building over its cushion of loss-absorbing instruments over the next two years....

Research Update