Security & Fraud

Loomis To Launch Internal Money Laundering Inquiry

Loomis To Launch Money Laundering Inquiry

Loomis, the Swedish cash handling company, said it will launch an internal inquiry into allegations it was involved in a money laundering scandal in Denmark.

In an interview with Reuters, Loomis Chief Executive Officer Patrik Andersson said that during its annual general meeting, a Denmark TV2 journalist claimed that Loomis’ cooperation with a foreign exchange bureau implicates the company in the scandal. The CEO said the company hasn’t been contacted by regulatory authorities and that earlier checks didn’t show any evidence to implicate it.

In 2016, Danish authorities convicted exchange agencies in the country for helping launder millions of dollars. Loomis wasn’t associated with the case previously, noted the report. The executive told Reuters the journalist didn’t offer any proof to back up the allegations, but nevertheless the company is looking for an independent agency to run an investigation. Andersson said he would provide updates as it progresses.

“From what I know, there is nothing,” he said. “But … we take these allegations very seriously … what we’ve done is immediately started to look into the matter.”

Loomis is among the companies that are facing more scrutiny by regulators in the wake of the massive Danske Bank money laundering scandal. The bank is now the subject of several investigations that have crossed countries and involved many financial players. In addition, the Danish operations of Scandinavia’s biggest bank, Nordea Bank Abp, is also under investigation for money laundering.

In April, Denmark decided to ban 500-euro notes in an attempt to fight money laundering in the country. The decision was made despite a request by the European Central Bank (ECB) not to ban the note. But Danish authorities believe the bills’ use for criminal activities justifies the ban, adding that the ECB even decided to stop printing the notes in 2016 under the recommendation of the Financial Action Task Force, a global anti-laundering organization.


New PYMNTS Report: Preventing Financial Crimes Playbook – July 2020 

Call it the great tug-of-war. Fraudsters are teaming up to form elaborate rings that work in sync to launch account takeovers. Chris Tremont, EVP at Radius Bank, tells PYMNTS that financial institutions (FIs) can beat such highly organized fraudsters at their own game. In the July 2020 Preventing Financial Crimes Playbook, Tremont lays out how.