Sweden's Loomis finds failings in money laundering oversight

STOCKHOLM (Reuters) - Swedish cash-handling firm Loomis AB LOOMb.ST reported flaws in its anti-money laundering oversight on Friday and vowed to fix them.

Loomis launched an investigation into its operations in May after a journalist alleged it was implicated in a Danish money laundering scandal involving foreign exchange agencies.

Danish authorities convicted the owners of several exchange agencies in Copenhagen in 2016 for having helped criminal networks launder million of dollars in suspicious funds.

“Despite proactive work by Loomis FX, such as contacts with authorities and engagement of external experts, deficiencies have in some cases led to FX operations not being conducted satisfactorily,” Loomis said.

The firm said it had informed Danish and Norwegian financial authorities about the shortcomings it uncovered and would strengthen its procedures.

Loomis said it had terminated its foreign exchange business with Danish exchanges at the end of 2018. The company does not expect its findings to have any significant impact on its financial position or results, it said.

In the past year, Nordic lenders Danske Bank DANSKE.CO and Swedbank SWEDa.ST have become embroiled in a money laundering scandal involving their branches in Estonia.

Reporting by Esha Vaish in Stockholm; editing by Jason Neely