Danske Bank’s Estonian Branch Linked to Russian Money Laundering

A shocking exposé has revealed that Danske Bank’s Estonian branch was used as a money laundering machine, helping shadowy figures from Russia and Eastern Europe wash an estimated $230 billion in dirty money. The scandal, which dates back over nine years, involves top executives at the bank and highlights the lax controls and lack of oversight that allowed such criminal activity to thrive.

The Scandal Unfolds

According to leaked documents, Beta Consult, a U.K. LLP and LP wholesale operation, was secretly run by Danske Estonia’s star banker Juri Kidjajev and account managers in his foreign banking division. The company had its own account at the bank, and dozens of other customers made payments into it.

• Kidjajev and several colleagues are now the focus of an Estonian criminal investigation.
• Anna Kurilenko, a former account manager who worked with Kidjajev, was arrested in 2018 as part of the probe. She denied knowing much about Beta Consult, but said she didn’t know how cash deposits equivalent to almost $385,000 had landed in her bank accounts since 2011.

The Whistleblower’s Warning

Howard Wilkinson, a British national who worked at Danske Estonia’s currency and bond-trading team, raised concerns about suspicious transactions. He discovered that several U.K. LLPs and LPs had filed false financial statements with Companies House, and alerted his superiors to the potential fraud.

• His warnings were ignored, but he sent a second whistleblower email, prompting top executives at Danske Bank to take notice.
• The bank eventually shut down 853 accounts in 2014, many of which belonged to U.K. LLPs and LPs, but not before millions of dollars had been laundered.

Consequences and Calls for Action

The scandal has led to widespread outrage and calls for greater accountability at the bank. Thomas Borgen, Danske Bank’s former CEO, resigned immediately after a scathing report was released in 2018, and he has since been charged with an unspecified offense.

• It’s time for regulators to take action and hold those responsible accountable.
• This scandal is just one more example of how corruption and money laundering can thrive in the shadows of the financial system.