Money-laundering scandal at Danske Bank

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Author (Corporate)
Publication Date 2018
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Summary:

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 https://www.eurotopics.net/en/202812/
Euro|topics, 20.09.18: Danske Bank chief resigns over money laundering https://www.eurotopics.net/en/206798/
Deutsche Welle, 25.09.18: Danish scandal reveals UK's Faustian pact with Russia https://www.dw.com/en/danish-scandal-reveals-uks-faustian-pact-with-russia/a-45625368
EUobserver, 21.11.18: Deutsche Bank dragged into Danish bank scandal https://euobserver.com/justice/143456

News
Reuters, 11.07.18: Danske Bank's head of compliance resigns https://uk.reuters.com/article/danske-bank-moves/danske-banks-head-of-compliance-resigns-idUKS3N1T8004
BBC News, 19.19.18: Danske Bank boss quits over €200bn money-laundering scandal https://www.bbc.co.uk/news/business-45571744
Reuters, 20.09.18: Under fire Danske Bank faces fresh money laundering inquiry https://www.reuters.com/article/us-danske-bank-moneylaundering/under-fire-danske-bank-faces-fresh-money-laundering-inquiry-idUSKCN1M0147
Reuters, 21.09.18: British inquiry intensifies Danske Bank money laundering scandal https://www.reuters.com/article/us-danske-bank-moneylaundering/british-inquiry-intensifies-danske-bank-money-laundering-scandal-idUSKCN1M10PW
Politico, 24.09.18: EU watchdog to probe Danish, Estonia supervisors over Danske Bank https://www.politico.eu/article/eba-to-scrutinize-danish-estonia-watchdogs-over-danske-bank/
Danske Bank, 19.09.18: Findings of the investigations relating to Danske Bank's branch in Estonia https://danskebank.com/news-and-insights/news-archive/press-releases/2018/pr19092018
Reuters, 27.02.18: Estonia to investigate Danske Bank after new money-laundering allegations https://www.reuters.com/article/us-danske-bank-moneylaundering/estonia-to-investigate-danske-bank-after-new-money-laundering-allegations-idUSKCN1GB1TG
Danske Bank, 18.07.18: Danske Bank intends to waive income from suspicious transactions in Estonia https://danskebank.com/news-and-insights/news-archive/press-releases/2018/pr18072018a
Reuters, 19.09.18: Danske Bank set to shed light on Russian money flows to Europe https://www.reuters.com/article/us-danske-bank-moneylaundering/danske-bank-set-to-shed-light-on-russian-money-flows-to-europe-idUSKCN1LY37W
Reuters, 03.10.18: Estonia says over $1 trillion flowed through the country in 2008-2017 https://uk.reuters.com/article/uk-estonia-moneylaundering/estonia-says-over-1-trillion-flowed-through-the-country-in-2008-2017-idUKKCN1MD1MR
Bloomberg, 28.11.18: Danske Receives Preliminary Charges Over Money Laundering https://www.bloomberg.com/news/articles/2018-11-28/danske-bank-receives-preliminary-charges-over-money-laundering
EUobserver, 29.11.18: Danish bank faces criminal charges in test of EU system https://euobserver.com/economic/143533
Reuters, 28.11.18: Danish prosecutor charges Danske Bank over money laundering allegations https://www.reuters.com/article/danske-bank-moneylaudnering/danish-prosecutor-charges-danske-bank-over-money-laundering-allegations-idUSL8N1Y355I

Official
Financial Supervisory Authority, 24.09.18: Inquiry from EBA concerning anti-money laundering supervision https://www.finanstilsynet.dk/en/Nyheder-og-Presse/Pressemeddelelser/2018/EBA-hvidvasktilsyn-240918
Financial Supervisory Authority, 20.09.18: Comments on the Danske Bank Case https://www.finanstilsynet.dk/en/Nyheder-og-Presse/Pressemeddelelser/2018/Danske-Bank-200918
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 https://danskebank.com/news-and-insights/news-archive/company-announcements/2018/ca28112018

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