Danske Bank Agrees to Pay $2.9 Billion for Money Laundering Scandal, Admits to Fraud
Record-Breaking Fine Settlement
- Danske Bank A/S, Denmark’s largest lender, agrees to pay a record-breaking $2.9 billion fine
- The settlement includes a criminal penalty of $2 billion and $850 million in credit for parallel probes
Money Laundering Allegations
Estonian Branch’s High-risk Clients
- Danske Bank’s Estonian branch provided banking services to high-risk, non-resident customers
- facilitating access to the U.S. financial system despite inadequate AML controls
Facilitating Deceptive Practices
- Danske Bank lied to U.S. banks about Estonian branch’s AML program, transaction monitoring capabilities, and customers’ risk profiles
- Over $160 billion was processed through U.S. banks on behalf of high-risk clients
U.S. Authorities Response
“Danske Bank defrauded U.S. banks and intentionally violated our anti-money laundering rules to gain unlawful access to the U.S. financial system for its Non-Resident Clients.”
- Deputy Attorney General Lisa O. Monaco
“The Justice Department will continue to work with foreign partners to hold bad actors accountable for their criminal conduct.”
- Assistant Attorney General Kenneth A. Polite, Jr.
Regulatory Investigations
- Danish and American regulators began investigating Danske Bank’s Estonian branch in 2018
- Danske Bank acknowledged “deficiencies in Danske Bank’s AML control function, human error, and deliberate violations of Danske Bank’s policies”
Cooperation and Future Measures
- Danske Bank pledged to significantly strengthen AML controls and implement stricter compliance measures
Criminal Proceedings
- Danske Bank is due to appear in court to formally enter its guilty plea on a later date
- The FBI will continue its investigation into Danske Bank’s conduct
“From 2007 to 2015, deficiencies in Danske Bank’s AML control function, together with human error and deliberate violations of Danske Bank’s policies, enabled money laundering to occur.”
- Danske Bank statement