Nordic Banks Team Up to Fight Financial Crime in Construction Industry
By Dominic Chopping
STOCKHOLM--A group of seven Nordic banks Wednesday launched a
new initiative that will see them implement new rules on lending to
the construction sector in an effort to fight financial crime.
The initiative will see a set of guidelines implemented later
this year in Sweden at Danske Bank AS, Svenska Handelsbanken AB,
Nordea Bank Abp, SBAB Bank AB, Skandinaviska Enskilda Banken AB,
Sparbankerna and Swedbank AB.
"Financial crime and illegal labour in the construction industry
lead to significant negative effects for society, in the form of a
loss of tax income and difficulties monitoring whether human rights
are respected at construction sites," Handelsbanken said.
"In their role as a credit provider to construction companies
and property companies, banks have the capacity to make a
difference through the terms and conditions they apply to their
Each bank has its own processes to prevent products and services
from being exploited for financial crime and this initiative
introduces new requirements on borrowers as part of the banks'
The banks have agreed on uniform guidelines in lending to
construction companies and property companies which aim to ensure
that borrowers have control over production and achieve greater
oversight of the labour used throughout all supply chains, as well
as guaranteeing that any sub-contractors comply with all applicable
Write to Dominic Chopping at email@example.com
(END) Dow Jones Newswires
April 14, 2021 03:37 ET (07:37 GMT)
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