Nordea has been slammed by many for its role in helping customers set up companies in tax havens, as revealed in the so-called Panama Papers leak of data from the Panamanian law firm Mossack Fonseca. But it was not the only Nordic bank helping people set up firms offshore.
An Yle investigation has found that the Swedish bank SEB was also engaged in the practice via a Luxembourg-registered company called LWM. Since 2014 that firm has been owned by the Finnish investors Henrik and Georg Ehrnrooth, scions of an aristocratic family that has been active in Finnish business, politics and industry for centuries.
Both Ehrnrooths declined to speak to Yle about LWM, but the outfit’s former owner SEB was happy to explain the company’s purpose.
"Hallmarks of tax planning"
"Naturally in the background is often a desire to arrange things so that tax is paid in the country where tax is comparatively low," said Gent Jansson, the bank’s head of compliance. "Sure, it bears the hallmarks of tax planning."
SEB says that it no longer founds companies like LWM, which is effectively in the businesses of selling secrecy. It’s almost impossible to identify the real owners of firms set up by LWM because they often use complicated ownership chains and shell companies spread over multiple jurisdictions.
The Swedish bank says that nowadays it demands that its customers take care of all their tax obligations.
"I have myself dealt with several cases where we have ended our relationship with a customer because we felt that the customer hadn’t been completely open," said Jansson.
Taxman "fully aware"
The Panama Papers show that LWM has for years enjoyed tight co-operation with Mossack Fonseca, although that involvement faded in recent years.
Yle requested an interview with former Nokia boss Jorma Ollila, an LWM customer. He did not answer phone calls but stated by text message that he had no knowledge of Mossack Fonseca’s involvement in his own firm’s foundation.
"As an SEB customer the company set up for me has always been known to the Finnish tax authorities, and it has had no connections to Panama," said Ollila before directing further questions to his lawyer.
All the LWM customers contacted by Yle said that the tax authorities were fully aware of their companies.
