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Swedish financial services authority, to review Forex Bank over Panaxia
bankruptcy.

Tuesday, 25 September 2012
Swedish financial services authority, FI has called on the management of the Forex bank at least twice in recent weeks, after the collapse of Panaxia. It is reported that the inspector feels that there could be a link between the collapse of Panaxia and operations with the Forex bank.

We reported recently that Panaxia, a security group that offers a range of services in the field of security and logistics based in Sweden went bankrupt a few weeks ago.
Several Swedish companies are suffering as a result of the collapse of the company and now the Forex banks which has been associated with the operations of the company has questions to answer, writes Swedish newspaper, Svenska Dagbladet.
The investigation could lead to sanctions against the bank, the newspaper said.

Forex Bank, which is both a major shareholder and customer of Panaxia, has lost nearly a quarter of a billion Swedish Krona in the bankruptcy and the crash has revealed to have deficiencies in the bank's control.

It is reported that shortly before bankruptcy, Panaxia failed to control the daily cash management takings from Forex stores on the company's account without the knowledge of the bank's CEO Magnus Cavalli-Björkman.

According to the agreement, the money would be submitted within three days after retrieval. Panaxia took 8 days for the money to get into Forex.

FI now want to know what happened and what the bank is doing to ensure that it does not happen again.
"We are investigating the company and a close dialogue with management about the incident, "said Chris Pine Norderstedt, head of banking supervision at the FSA to Svenska Dagbladet.

Forex Bank has previously received a fine of Skr50 million and a warning from the FSA.
By Scancomark.com Team

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