US Launches Danske Bank Criminal Probe, Seeks Data

Tom Burroughes

4 October 2018

The US Department of Justice has started a criminal probe of European lender Danske Bank’s Estonian branch, now the subject of a major money laundering scandal that has already seen the bank’s chief executive depart.

“Danske Bank is in dialogue with authorities regarding the terminated non-resident portfolio at the bank’s Estonian branch, which was active between 2007 and 2015. This includes criminal investigations in Estonia and Denmark,” the Copenhagen-based bank said in a statement today.

The bank said that the DoJ is seeking information about a criminal probe; Danske said it is co-operating with the organization’s enquiries.

“The timing of completion of the investigations by, and subsequent discussions with, the authorities is uncertain, as is the outcome,” Danske Bank said.

“We are cooperating with the authorities investigating us as a result of the case. However, it is too early to speculate on any outcome of the investigations,” said interim CEO of Danske Bank, Jesper Nielsen.

The move by US authorities to investigate Danske Bank puts further pressure on the lender; recent years have seen the DoJ target Swiss banks over secret accounts, the global soccer organization FIFA, and a number of banks for breaches of sanctions against regimes such as Iran. The latest case also demonstrates the extra-territorial reach of US authorities if they suspect that there have been transactions affecting the US.

The money laundering saga in the Baltic region has prompted calls from some for the European Union to flex its muscles in how illicit financial flows are policed. Here is a list of recent regulatory actions against banks and financial organizations.