Nordea Bank, one of Scandinavia's largest financial institutions, was fined $35 million by US authorities for serious deficiencies in its anti-money laundering measures. According to a statement from the New York State Department of Financial Services, the fine particularly pertains to deficits in the bank's branches in Denmark and the Baltic states, as well as inadequate assessments of correspondent banking relationships.

The investigation against Nordea was triggered by the release of the Panama Papers in 2016, which revealed that the bank had allegedly assisted customers in setting up offshore accounts. Branches in Latvia, Lithuania, and Estonia were reportedly involved in high-risk transactions and money laundering worth billions. Nordea closed these branches as well as its office in Vesterport, Denmark, in 2017.

The New York financial regulatory authority indicated that the activities of Vesterport branch Nordea were involved in the flow of illegal funds with companies connected to the so-called "Russian Laundromat" and "Azerbaijani Laundromat." These networks were known for diverting and laundering funds from Russia and other former Soviet states.

In a statement, Nordea announced that it has been fully cooperating with the authorities since the start of the investigation in 2019. The company also emphasized that it is now in a completely different position compared to the time when the alleged offenses were committed. According to Nordea, the imposed fine will not have any significant impact on the bank's financial results.

The reaction of the stock market was cautious: The Nordea share briefly traded 0.05 percent higher at 10.625 euros on the Nasdaq Nordic on Wednesday.