Swedbank headquarters in Sundbyberg were raided by the Swedish Economic Crime Authority (EBM) over allegations of money laundering.
The move comes after Swedish public broadcaster SVT alleged that the bank managed €135bn for high-risk non-residents.
Majority of these people were said to be Russians.
The business was managed by the bank’s Estonian unit over the last ten years, SVT said.
“The information paints a picture of Swedbank appearing to have spread misleading information to the public and the market about what the bank knew about suspected money laundering within Swedbank in the Baltic States,” EBM noted.
SVT also said that the bank misled US authorities over dealings with Mossack Fonseca, which has been at the centre of the Panama Papers scandal.
Meanwhile, Sweden’s Economic Crime Authority is investigating the bank on suspicion of insider information rule violation.
The bank however said that “no individual or legal entity has been served suspicion of a crime”.
Amidst the ongoing probe, the Swedbank board dismissed its CEO Birgitte Bonnesen.
Swedbank chair Lars Idermark said: “The developments during the past days have created an enormous pressure for the bank.
“Therefore, the Board has decided to dismiss Birgitte Bonnesen from her position.”
The bank’s existing CFO Anders Karlsson will replace Bonnesen on an interim basis.
“Swedbank believes that it has been truthful and accurate in its communications with all government authorities. We will continue to cooperate with all relevant authorities in connection with this matter”, Bonnesen had earlier said in response to the allegations.
Another Nordic lender, Danske Bank, was under the scanner recently over similar charges.
Last month, Danske Bank decided to shutter operations in Russia and all Baltic States after Estonian authorities ordered it to quit the country over money laundering allegations.