Danske Bank Slapped with €470m Fine in Danish Money Laundering Scandal

## Major Deficiencies in Danske Bank's Money Laundering Systems

Regulators in Denmark discovered "major deficiencies" in Danske Bank's money laundering systems between 2007 and 2015. These deficiencies included:

- Inadequate transaction monitoring capabilities
- Failure to react promptly to warning signs

In conjunction with the fine, Denmark has also confiscated €1.25bn in profits from the bank's subsidiaries.

## Accusations from US Department of Justice

The US Department of Justice accused Danske Bank of deceiving American regulators by concealing these shortcomings and gained unlawful access to the US financial system. Around €200bn was laundered through its Estonian subsidiary during this period.

> *Quote from Prosecutor Bülow*
> "It is extremely serious when a bank does not have sufficient corporate governance and internal controls in the area of money laundering, and does not react properly and in a timely manner to warnings about possible money laundering."

## Bank's Response and Ongoing Investigations

Following the scandal's exposure in 2018, Danske Bank has since shuttered its subsidiaries in the Baltic countries and Russia to improve compliance with money laundering legislation.

The bank has also agreed to pay $2bn to resolve ongoing fraud investigations against US banks. This settlement equates to approximately €1.9bn.

In response to these investigations, US Department of Justice described Danske Bank's actions as "extremely serious," involving "significant deficiencies" in the bank's anti-money laundering systems.

Danske Bank representatives did not comment on the fine when contacted by Euronews.

## Restructuring and Layoffs

The bank, which had already reported significantly reduced profits for the year, is currently in the process of restructuring its business in Europe and has confirmed it will lay off 1,000 employees by the end of 2023.