Compliance
Compliance Corner - Danske Bank
The latest compliance issues in wealth management across Europe, Middle East and Africa.
Danske Bank
Danske Bank is
being formally investigated by a top French court as probes into
the lender's alleged involvement in a major money laundering
scandal continue.
The Copenhagen-headquartered bank said yesterday it has been
placed under formal investigation by an investigating judge at
the Tribunal de Grande Instance de Paris. The probe relates to
certain transactions in portfolio of non-resident customers of
Danske Bank’s branch in Estonia in the period from 2007 to
2014.
The investigation covers transactions amounting to around €21.6
million ($24.5 million). Danske Bank has been ordered to post
bail in the amount of €10.8 million.
Investigations into Danske have been going on for more than a
year, and the saga has led to the resignation in September 2018
of Thomas Borgen, its chief executive. The case, along with other
money laundering problems and claims in countries such as Latvia
and Malta, has prompted some figures to argue that national
controls against dirty money are not fit for purpose.
Danske said that a report, date 19 September last year, prepared
by Danish law firm Bruun & Hjejle, had showed shortcomings and
failures, but an examination into the terminated portfolio of
non-resident customers "has made no findings which enable it to
conclude whether money laundering, tax evasion or other criminal
activity has actually taken place".
Danske Bank was first placed under formal investigation in France
on 11 October 2017. On 25 January 2018, Danske Bank’s status in
the investigation was changed to that of an assisted witness.
The bank added it will continue to co-operate with French
authorities.
