Following the CEO's resignation from the under-fire bank last month, an interim CEO has been appointed.

Danske Bank has appointed one of its senior figures, Jesper Nielsen, as interim chief executive while it seeks a permanent replacement for Thomas F Borgen, who resigned last month amid a major money laundering scandal at the bank. 

Nielsen will continue to perform his duties as head of banking DK and is not a candidate for the permanent CEO position, the Copenhagen-based bank said yesterday. 

In May, Denmark’s financial regulator told Danske Bank that it needs to bolster its capital by DKK5 billion ($803 million), and imposed eight orders and eight reprimands on the lender. Estonia’s financial watchdog in February said it would open an investigation into the lender after media reports claimed that it had been aware of money laundering allegations at its Estonian business as far back as 2013. Estonia’s general prosecutor has started a criminal investigation of Danske Bank over claims that the Danish bank was involved in money laundering via the Baltic nation.

The bank has seen a number of high-profile figures depart as it has been hit by a money laundering scandal centred on its Estonian operations. It has employed a new compliance boss, while its recent financial results showed a fall in profits.

The Danske Bank affair is one of a number of money laundering problems in European countries, prompting calls for a more co-ordinated approach by European regulators.

Anti-fraud move
Separately, Danske Bank has chosen a UK-based fraud prevention firm, Featurespace, to help defeat criminals. Featurespace calls itself “the leading machine learning Adaptive Behavioural Analytics fraud prevention company”.

The firm’s Featurespace’s ARIC™ Fraud Hub was chosen as the best solution to defeat card fraud.