Danske Bank Suffers More Compliance Woes - Report

Robbie Lawther

25 September 2018

Danske Bank’s money laundering scandal has spread to Britain where the National Crime Agency said it is investigating the use of UK-registered companies, according to Reuters.

This comes days after the chief executive of Danske Bank, Thomas Borgen, announced his resignation 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 report said that NCA was “aware of the use of UK-registered companies in this case and has related ongoing operational activity”, adding that the threat posed by the use of UK-registered companies for money laundering was “widely recognised” and that Britain was working to restrict it.

British and Russian entities dominate a list of accounts used to make €200 billion in payments through Danske Bank’s Estonian branch between 2007 and 2015, many of which the bank said are suspicious. By 2013, the number of UK-registered customers in its non-resident portfolio topped 1,000, Danske Bank’s report revealed, ahead of Russia, the British Virgin Islands and Finland.

Investor concerns over the potential penalties Danske Bank could face have increased, with particular focus on what action US authorities might take after an investigation commissioned by the bank exposed control and compliance failings.

This publication has contacted NCA for a comment, and will update in due course.