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Money Laundering Scandal Rocks Danske Bank
Danske Bank, a major Danish bank, has been embroiled in a massive money laundering scandal involving its Estonian branch. An investigation into the bank’s activities in the early 2010s revealed that the Estonia branch helped launder up to $230 billion in dirty money over nine years.
Warning Signs Ignored
- In late 2013, a whistleblower named Wilkinson alerted Danske Bank’s headquarters in Copenhagen about suspicious financial transactions and potential money laundering at the Estonia branch.
- Despite his warnings, the bank did not take adequate action, and Wilkinson continued to send emails to the bank’s executives, urging them to investigate further.
Regulators Discover Widespread Corruption
- In 2014, regulators from the Estonian Financial Services Authority discovered that the branch had systematically taken on suspicious customers, and its scrutiny of these customers was ineffective.
- The investigation revealed that the Estonia branch had helped launder up to $230 billion in dirty money over nine years.
Whistleblower Testifies, CEO Resigns
- Wilkinson testified before the Danish and European parliaments about his findings and concerns.
- The former CEO of Danske Bank resigned immediately after the investigation’s findings were released.
This scandal highlights the need for banks to prioritize transparency and accountability in their financial dealings. It also underscores the importance of whistleblowers in bringing attention to potential wrongdoing and ensuring that justice is served.