Nordea Bank Faces 400,000 EUR Fine for Late Transaction Reporting

Fintechist Nordea Bank Fine

It is evident most major banks are in the crosshairs of consumers right now. The recent development at Nordea Bank AB’s Finnish Branch will certainly cause some debates. Although customers are not affected, the institution faces a 400,000 EUR deficit due to a programming error. Not the best day for this institution, to say the very least.

Banks all over the world have to adhere to some very strict guidelines. For Nordea’s Finnish branch, timely transaction reporting is of the utmost importance. Unfortunately, it seems their latest reporting was done too late, granted them a hefty financial penalty. This incident dates back to 2016 but only came to light this week.

A Bad Day for Nordea Bank

To put this into perspective, the bank had to deal with a major programming error. While an isolated incident, it caused Nordea to miss the reporting deadline. The reporting of mandatory information on a limited number of transactions was delayed because of this error. Although corrected eventually the 400,000 EUR fine is still in place and needs to be paid.

Thankfully, it seems this programming error does not cause any major problems for Nordea Bank customers. The transaction report has no impact on the bank’s day to day operations whatsoever. Instead, it is an internal problem which needs to be addressed properly. The report in question was submitted to FIN-FSA back in 2016, thus the problem has been rectified.

It is not the first time a bigger bank suffers from a programming error. Nor will it be the last time. Technical glitches like these can occur at any given moment. Unfortunately, it will virtually always lead to some sort of financial penalty. Nordea Bank will have no problem absorbing this fine whatsoever.

Header image courtesy of Shutterstock

JOIN THE DISCUSSION