Money-laundering scandal at Danske Bank

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Publication Date 2018
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The Danske Bank has been under investigation of money-laundering charges since 2013. On 20 September 2018, new inquiries were made regarding the money-laundering of 200 billion euros through the Estonian branch of the bank between 2007-2015. The bank was unable to confirm the origins of the money. Yet, the bank did disclose that 23 % of the money originated from Russia.

The Danish State Prosecutor for Serious Economic and International Crime (SOIK) filled preliminary charges against Danske Bank for violating the Danish Anti-Money Laundering Act, on 28 November 2018.

Further information:

The chief executive of Danske Bank Thomas Borgen resigned after the recent inquiry in the money-laundering scandal.

The Danish Finanstilsynet or Financial Supervisory Authority (FSA) concluded earlier investigations in 2014 and in May 2018. The FSA will now re-open the investigation of the money-laundering at the Danske Bank.

Not only the Danske Bank has been involved in the scandal, as Estonia admitted that 1 trillion euros flowed through the country between 2008-2017. The large amount far exceeds the economic output of the country, which indicates that a large sum of the money was not linked to economic activity in the country. Deutsche Bank has also been under investigation since 20 November, as it handled a sum of the suspicious money of Danske Bank.

Related Link(s)
Commentary and Analysis
Euro|topics, July-August 2018: Estonia: Money laundering scandal at Danske Bank
Euro|topics, 20.09.18: Danske Bank chief resigns over money laundering
Deutsche Welle, 25.09.18: Danish scandal reveals UK's Faustian pact with Russia
EUobserver, 21.11.18: Deutsche Bank dragged into Danish bank scandal

Reuters, 11.07.18: Danske Bank's head of compliance resigns
BBC News, 19.19.18: Danske Bank boss quits over €200bn money-laundering scandal
Reuters, 20.09.18: Under fire Danske Bank faces fresh money laundering inquiry
Reuters, 21.09.18: British inquiry intensifies Danske Bank money laundering scandal
Politico, 24.09.18: EU watchdog to probe Danish, Estonia supervisors over Danske Bank
Danske Bank, 19.09.18: Findings of the investigations relating to Danske Bank's branch in Estonia
Reuters, 27.02.18: Estonia to investigate Danske Bank after new money-laundering allegations
Danske Bank, 18.07.18: Danske Bank intends to waive income from suspicious transactions in Estonia
Reuters, 19.09.18: Danske Bank set to shed light on Russian money flows to Europe
Reuters, 03.10.18: Estonia says over $1 trillion flowed through the country in 2008-2017
Bloomberg, 28.11.18: Danske Receives Preliminary Charges Over Money Laundering
EUobserver, 29.11.18: Danish bank faces criminal charges in test of EU system
Reuters, 28.11.18: Danish prosecutor charges Danske Bank over money laundering allegations

Financial Supervisory Authority, 24.09.18: Inquiry from EBA concerning anti-money laundering supervision
Financial Supervisory Authority, 20.09.18: Comments on the Danske Bank Case
Danske Bank, 28.11.18: Danske Bank preliminarily charged by SØIK with violating the Danish Anti-Money Laundering Act in the case relating to the Estonian branch

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