Arab Press

بالشعب و للشعب
Friday, Jun 20, 2025

Bankers who profited from Nordic hiring boom now in firing line

Bankers who profited from Nordic hiring boom now in firing line

A few years ago, Danske Bank was adding thousands of jobs to a department that suddenly seemed more important than most others: compliance. But with headcount growing more than 10-fold in some cases, those same jobs are now at risk.

This month, Danske Bank A/S warned of “significant” cuts, with analysts betting at least 1,000 jobs will be axed, especially in compliance. Nordea Bank Abp says most of the 1,500 jobs it created to fight financial crime just a few years ago need to be automated to keep costs in check.

Mikael Bjertrup, head of Nordea’s financial crime prevention unit, says the bank hired a “huge number of people” in 2016 and 2017. But cuts are now under way, because “it’s simply too expensive,” he told Bloomberg.

Nordic banks beefed up compliance units in response to a wave of financial crime allegations. Most notably, Danske’s Estonian dirty-money affair, which is still being investigated by prosecutors across the globe.

“After the scandals the banks rushed to add people, since they couldn’t change technology overnight. The simplest way is adding more people,” said Sujata Dasgupta, Stockholm-based expert on financial crimes compliance at Tata Consultancy Services Ltd. But, she said, “there will be a rebalancing of labor: you might not need so many people in the first line, and there’s scope for automation.”

The Pandemic


The need to cut back is more urgent than ever after the Covid-19 crisis pummeled loan books and ate into profits. Analysts say compliance is an obvious area for cuts, after departments mushroomed quickly in the wake of scandals, often without much time to focus on efficiency.

Banks across the U.K., Germany, France, Italy and the Netherlands are seen spending $136.5 billion on financial crime compliance, up from around $85 billion in 2017. About 62% of the compliance budgets are spent on labor, down from 74% a few years ago, according to LexisNexis Risk Solutions Inc. Financial crime compliance processes and burdens boosted banks’ costs 7% annually during the past two years, with negative impact on productivity and winning new business, it said.

“Reversing the compliance-cost burden of the banks in the aftermath of the money-laundering scandal is likely to be key,” said Philip Richards, a senior analyst at Bloomberg Intelligence.

For Danske and Swedbank AB, two Nordic banks being investigated in the U.S. for their alleged involvement in money laundering, costs are up as much as 20% from 18 months ago, mostly due to extra spending on compliance, Bloomberg Intelligence estimates.

About 10% of Danske’s staff are now working to fight financial crime. That’s after the bank’s 2018 admission that much of about $230 billion in non-resident flows via an Estonian unit was suspicious.

Newsletter

Related Articles

Arab Press
0:00
0:00
Close
16 Billion Login Credentials Leaked in Unprecedented Cybersecurity Breach
Senate hearing on who was 'really running' Biden White House kicks off
G7 Leaders Fail to Reach Consensus on Key Global Issues
Mass exodus in Tehran as millions try to flee following Trump’s evacuation order
Iranian Military Officers Reportedly Seek Contact with Reza Pahlavi, Signal Intent to Defect
China's Iranian Oil Imports Face Disruption Amid Escalating Middle East Tensions
Trump Demands Iran's Unconditional Surrender Amid Escalating Conflict
Israeli Airstrike Targets Iranian State TV in Central Tehran
President Trump is leaving the G7 summit early and has ordered the National Security Council to the Situation Room
Netanyahu Signals Potential Regime Change in Iran
Analysts Warn Iran May Resort to Unconventional Warfare
Iranian Regime Faces Existential Threat Amid Conflict
Energy Infrastructure Becomes War Zone in Middle East
Iran Conducts Ballistic Missile Launches Amid Heightened Tensions with Israel
Iran Signals Openness to Nuclear Negotiations Amid Ongoing Regional Tensions
Shock Within Iran’s Leadership: Khamenei’s Failed Plan to Launch 1,000 Missiles Against Israel
UK Deploys Jets to Middle East Amid Rising Tensions
Exiled Iranian Prince Reza Pahlavi Urges Overthrow of Khamenei Regime
Wreck of $17 Billion San José Galleon Identified Off Colombia After 300 Years
Iran Launches Extensive Missile Attack on Israel Following Israeli Strikes on Nuclear Sites
Israel Issues Ultimatum to Iran Over Potential Retaliation and Nuclear Facilities
Coinbase CEO Warns Bitcoin Could Supplant US Dollar Amid Mounting National Debt
Trump to Iran: Make a Deal — Sign or Die
Operation "Like a Lion": Israel Strikes Iran in Unprecedented Offensive
Israel Launches 'Operation Rising Lion' Targeting Iranian Nuclear and Military Sites
Israeli Forces Intercept Gaza-Bound Aid Vessel Carrying Greta Thunberg
IMF Warns of Severe Global Trade War Impacts on Emerging Markets
Syria to Reconnect to Global Economy After 14 Years of Isolation
Saudi Arabia Faces Uncertainty Over Succession After Mohammed bin Salman
Israel Confirms Arming Gaza Clan to Counter Hamas Influence
Majority of French Voters View Macron's Presidency as a Failure
U.S. Reduces Military Presence in Syria
Trump Demands Iran End All Uranium Enrichment in Nuclear Talks
Iran Warns Europe Against Politicizing UN Nuclear Report
Businessman Mauled by Lion at Luxury Namibian Lodge
Paris Saint-Germain's Greatest Triumph Is Football’s Lowest Point
OPEC+ Agrees to Increase Oil Output for Third Consecutive Month
Turkey Detains Istanbul Officials Amid Anti-Corruption Crackdown
Meta and Anduril Collaborate on AI-Driven Military Augmented Reality Systems
EU Central Bank Pushes to Replace US Dollar with Euro as World’s Main Currency
European and Arab Ministers Convene in Madrid to Address Gaza Conflict
Head of Gaza Aid Group Resigns Amid Humanitarian Concerns
U.S. Health Secretary Ends Select COVID-19 Vaccine Recommendations
Trump Warns Putin Is 'Playing with Fire' Amid Escalating Ukraine Conflict
India and Pakistan Engage Trump-Linked Lobbyists to Influence U.S. Policy
U.S. Halts New Student Visa Interviews Amid Enhanced Security Measures
Trump Administration Cancels $100 Million in Federal Contracts with Harvard
SpaceX Starship Test Flight Ends in Failure, Mars Mission Timeline Uncertain
King Charles Affirms Canadian Sovereignty Amid U.S. Statehood Pressure
Iranian Revolutionary Guard Founder Warns Against Trusting Regime in Nuclear Talks
×