Estonian Banking Scandal Rocks Industry as Danske’s Estonia Division Exposed for Funneling Billions in Suspicious Payments

A Massive Money-Laundering Scheme Uncovered

A staggering $220 billion in suspicious transactions was channeled through Danske Bank’s Estonian division between 2007 and 2015, with the majority believed to have originated from Russian sources. The Estonian Prosecutor’s Office has accused six suspects of initiating and operating a massive money-laundering scheme that served their personal interests by hiding it from other bank units.

Accused Individuals and Their Activities

• The accused are alleged to have laundered $2 billion and €6 million in dirty money stemming from crimes committed in Russia, Azerbaijan, Georgia, Switzerland, the United States, and Iran.
• Their services included:
  • Creating shell companies with hidden owners
  • Advising clients on how to conceal electronic transaction trails
  • Constructing transactions with no real economic value

“It was professional money laundering,” stated State Prosecutor Maria Entsik.

Seized Assets and Ongoing Investigations

• The authorities have seized €10 million worth of property obtained by the accused through their money-laundering fees.
• Danske Bank is still under investigation in France and facing numerous litigation claims related to the Estonia money-laundering scheme.
• In December, Danske pleaded guilty to bank fraud in the US and agreed to pay $2 billion to settle the case with US and Danish authorities.

Industry Reactions and Concerns

The sheer scale of the operation has sent shockwaves through the banking industry, raising questions about Danske’s accountability and compliance procedures. As the investigation continues, it remains to be seen what further revelations will emerge from this massive fraud scandal.