The bank has been hit by scandals around money laundering failings linked to Estonia, part of a set of dirty money episodes causing concern throughout Europe.

The chief executive of Danske Bank, Thomas F Borgen, is resigning from the bank amid a money laundering scandal linked to Estonia, one of a number of AML failings at banks in Europe over recent months.

The Copenhagan-headquartered bank said Borgen’s resignation was announced in connection with its presentation today of the conclusion of investigations into the Estonian affair.

”It is clear that Danske Bank has failed to live up to its responsibility in the case of possible money laundering in Estonia. I deeply regret this. Even though the investigation conducted by the external law firm concludes that I have lived up to my legal obligations, I believe that it is best for all parties that I resign,” Borgen said in a statement.

“As the CEO, I have the management responsibility for the things that take place in the bank, and, of course, I take on this responsibility. It has been clear to me for some time that resigning would be the right thing to do, but I have held off the decision, because I have felt a responsibility for seeing the bank through this difficult period towards presentation of the investigations,” he said. 

Borgen remains in his post until a new CEO has been appointed.

In May, Denmark’s financial regulator told Danske Bank 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 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 – which has already been warned it needs to bolster its capital – 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.

Ole Andersen, Danske’s chairman, said: ”It is with regret that we have to say goodbye to Thomas Borgen. We have, of course, discussed the situation on an ongoing basis, and I share his sentiments and respect his decision, which I agree is the right one. Thomas Borgen has made a tremendous effort for Danske Bank through many years – not least in the last five years where, as the CEO, he has been the driving force behind the bank’s transformation and progress. Danske Bank is on the whole in a completely different and stronger position today than at the time when he was appointed”.