Danske CEO Resigns After $234 Billion Tied to Laundromat Scandal
Source: Blloomberg
Danske Bank A/S Chief Executive Officer Thomas Borgen will step down amid allegations his bank was at the center of a major European money laundering scandal with as much as $234 billion flowing through a tiny Estonian unit.
The laundromat case has shocked Denmark, a country generally associated with some of the worlds lowest levels of corruption and highest levels of transparency. Criminal complaints against Danske have so far suggested its Estonian unit was used to launder as much as $9.1 billion between 2007 and 2015, with the illicit funds stemming mostly from Russia. Official investigations are ongoing in Denmark and Estonia and Danish media reported last month that U.S. authorities are also looking at the case.
Danske said it cant provide an accurate number for how much dirty money it may have laundered. But the banks $234 billion estimate of total flows through its Estonian unit -- a figure thats almost nine times the Baltic nations gross domestic product -- raises major questions about how serious management was about preventing money laundering.
The report unfortunately does not draw a line under the issue as we had hoped, analysts at Citi Research wrote in a client note. At Jefferies, analysts pointed out that the bank didnt refer to any sanctions violations, which is a relief given concerns of an investigation by U.S. authorities.Its unclear what the basis of any fine is at present, Jefferies said.
Read more: https://www.bloomberg.com/news/articles/2018-09-19/danske-bank-ceo-to-step-down-for-role-in-laundering-scandal
More fallout from money laundering by Putin and pals. I wonder if folks will find tRump involvement.
HuskyOffset
(889 posts)"...$234 Billion Tied to Laundromat Scandal"
I guess customers were opting for the extra starch option. Adds up quickly.
Hugin
(33,164 posts)Sherman A1
(38,958 posts)Come out in the wash.
BumRushDaShow
(129,098 posts)The Guardian did a big expose on this back in February based on a leak of a report from initial investigations - https://www.theguardian.com/world/2018/feb/26/russian-millions-laundered-via-uk-firms-leaked-report-says
Pretty significant stuff going on that is now being verified.
TomVilmer
(1,832 posts)Danske Bank completed its acquisition of Finnish-based Sampo Bank in February 2007. Then in June 2007:
"The Russian Central Bank expressed concern with regard to non-resident customers of Sampo Pank in Estonia. It shared information that 'clients of Sampo Bank permanently participate in financial transactions of doubt-ful origin' estimated at 'billions of rubles monthly'. ... The Russian Central Bank further stated that ... giving the legal form to the outflow of the capital, they can be connected with the criminal activity in its pure form, including money laundering'."
https://danskebank.com/-/media/danske-bank-com/file-cloud/2018/9/report-on-the-non-resident-portfolio-at-danske-banks-estonian-branch-.-la=en.pdf#page=41