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Estonia has asked Danske Bank to close its Tallinn branch before the end of 2019 as a result of a money laundering scandal.
The CEO, Thomas Borgen, resigned last year after investigating payments of about 200 billion euros made through the branch.
The bank said many of these payments were suspicious.
Interim Executive Director Jesper Nielsen said the bank would comply with the requirements and also close most of its activities in Latvia, Lithuania and Russia.
However, its shared services center in Lithuania will remain open.
"We recognize that the serious case of money laundering in Estonia has had a negative impact on Estonian society and it is better that Danske Bank put an end to its banking activities in Estonia," Nielsen said in a statement. communicated.
The Danske Bank branch must close within eight months and reimburse its deposits to its clients.
Kilvar Kessler, director of the Finnish banking regulator, Finantsinspektsioon, said: "We have every right to put an end to this situation, because there have been widespread violations of local rules, which is a serious blow to the market's reputation. Estonian financial institution ".
The incident prompted the European Banking Authority to open an investigation into potential infringements of the law of the Union of Estonian and Danish financial authorities.
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