NEW YORK (Reuters) -Nordea Bank agreed to pay $35 million to settle charges by New York's top financial services regulator that the Finnish bank had significant compliance failures and inadequate diligence over high-risk correspondent banking partners.

Adrienne Harris, New York's financial services superintendent, said the penalties followed the 2016 Panama Papers leak that exposed Nordea's role in helping hundreds of customers create tax-sheltered companies using offshore accounts.

Harris also said activity at a former Nordea branch in Vesterport, Denmark further implicated the bank in the flow of illegal funds.

Nordea, based in Helsinki, did not immediately respond to a request for comment.

(Reporting by Jonathan Stempel in New York)