Compliance

Danske Bank Chair, Shareholders Rap Lender Over Estonian AML Failures

Josh O'Neill Assistant Editor 19 March 2018

Danske Bank Chair, Shareholders Rap Lender Over Estonian AML Failures

The group voiced their concerns last week at the bank's annual general meeting.

Danske Bank’s chairman Ole Andersen and a chorus of shareholders last week criticised the lender over failings in anti-money laundering regime at its Estonia branch. 

Speaking at the bank’s annual general meeting, Andersen said: “It is highly unsatisfactory that we may have failed to meet both our own and society’s expectations to our anti-money laundering measures in Estonia in the period from 2007 to 2015.”

Estonia’s financial watchdog last month said it would open an investigation into Danske Bank after media reports claimed it had been aware of money laundering allegations at its Estonian business as far back as 2013.

Claus Wiinblad, senior vice president at pension fund ATP, Denmark’s largest investor, said at the meeting: “Given the seriousness of the case, the board should have reacted faster and initiated an investigation earlier.” ATP owned 1.05 per cent of Danske Bank at the end of 2017.

Wiinblad said it is critical for Danske Bank to be transparent about the findings from its investigation and that it draws any necessary consequences from it. “Nothing must be swept under the carpet,” he said.

The case is “painful” Leonhardt Pihl, chief executive of Danish Shareholders Association, a lobby group for private investors, said.

“The interest this case draws from the press and the politicians cannot help but affect the reputation of the bank,” he added. 

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