Danske Bank makes preliminary indictment on money laundering to the Estonian branch of the World

Danish bank Danske Bank on Wednesday laid preliminary charges as part of a money laundering investigation in its Estonian subsidiary from August 2007 to 2016.

The charges are presented in four points. According to Morten Neil Jakobsen, prosecutor of Danish international economic crime, "the investigation is still in its infancy".

In October, Jesper Nielsen, Interim Head of Danske Bank, said the bank was interested in conducting a thorough investigation of the case and working with the prosecutor.

The first point of the indictment indicates that the manner in which the Estonian branch complies with the Danish anti-money laundering guidelines is not adequately controlled, its Employees do not explain the content of this law or the bank's own rules in this area. From 2007 to 2016, management has no designated person at the level responsible for compliance with these rules.

Second, Danske Bank has not integrated the Estonian branch into its risk management and control system, which allows it to operate at very different risk levels. No sufficient information about customers and bank transactions has been collected.

Third, the bank did not take the necessary steps to determine the origin of deposits and badets. The establishment and eventual maintenance of business relationships with politically exposed persons have not been controlled by the branch manager responsible for complying with the provisions of the Money Laundering Act. Money and transactions of these people have not been subject to increased supervision.

Fourth, Danske Bank has not taken the necessary steps and has not informed the authorities of suspicious activities, although the bank had to understand in 2013 that such an investigation was necessary.

In 2014, the Estonian Financial Services Authority announced that Danske Bank had detected a long – term rule against large – scale money laundering in its Estonian branch.

It has been estimated that between 2007 and 2015, via Danske Bank, an Estonian branch could be funded up to 8 billion euros, reported the Danish press. However, recent hypotheses have been advanced that the amount of money laundered was much higher.

Danske Bank also has branches in Latvia and Lithuania.