Six Suspects Charged in Multi-Billion Dollar Money-Laundering Scheme at Danske Bank’s Estonia Division
The Estonian Prosecutor’s Office announced the indictment of six individuals for their roles in a money-laundering scheme that funneled through suspicious transactions worth more than US$220 billion from Danske Bank’s Estonia division between 2007 and 2015.
Suspicious Transactions worth over $2 billion and €6 million
The accused individuals are collectively accused of laundering $2 billion and €6 million ($6.6 million). The majority of the illicit funds are believed to have originated from Russian sources.
Services offered for Money-Laundering
The group, who initiated and operated the money-laundering scheme, hid it from other units of the bank for their personal interests. They offered various services to their clients, including:
- creation of legal entities to conceal real owners
- advice on how to erase the electronic trail of transactions from the bank’s records
- construction of transactions with no real economic content between individuals
Property Seized worth €11 million
State Prosecutor Maria Entsik described the activities as “professional money laundering.” The authorities have identified and seized €11 million ($11 million) worth of property that the accused acquired through fees charged for these money-laundering services.
Whistleblowing and Danish Bank’s Plea
The scandal came to light when a former trader informed Danske Bank’s Copenhagen head office about suspicious activities taking place within the Estonia division. In December 2021, Danske Bank pleaded guilty to bank fraud in the United States and agreed to pay a total of $2 billion to settle the case with U.S. and Danish authorities.
Ongoing Investigation and Believed Origins
However, the bank still faces an ongoing investigation in France and a number of litigation claims related to the Estonia money-laundering scheme. The suspected crimes are believed to have originated from Russia, Azerbaijan, Georgia, Switzerland, the United States, and Iran.
Individuals Currently in Police Custody
The individuals involved in this money-laundering scheme are currently in police custody while the investigation continues. Their names and further details regarding the case have yet to be disclosed.