Danske Bank A/S says it’s been placed under formal investigation in France over suspected money laundering at its Estonian branch.
The Copenhagen-based bank said the investigation covers transactions from 2007 to 2014 amounting to around 21.6 million euros ($24.5 million). Danske said it has been ordered to post bail for 10.8 million euros.
Danske had been placed under formal investigation in October 2017 only to have its status changed to assisted witness in January 2018. The action on Thursday by the French court reverses that decision and comes just as the bank appeared to be recovering from the damage caused by the saga.
In September the bank released a commissioned report in which it revealed that much of around $230 billion that flowed through its non-resident portfolio at the Tallinn branch was suspicious in origin, making Danske the hub of one of Europe’s biggest dirty money scams ever.
The laundering scandal, in which it’s alleged that billions of dollars flowed from the former Soviet Union and into the West until as recently as 2015, has made Danske the target of numerous criminal investigations, including in the U.S. With investors bracing for hefty fines, the scandal wiped about 47 percent off Danske’s market value last year.
Danske said that it’s cooperating with French authorities.
- Danske Money Laundering Scandal Damages Denmark’s Reputation: Regulator
- Danske Bank Faces Shareholder Lawsuit over Money Laundering Scandal
- Danske Bank’s Money Laundering Scandal Damages Client Confidence
- Danske Accused of Lying to French Investigators over Alleged Money Laundering
- Danish Prosecutors Charge Danske with Alleged Money Laundering Violations
- UK Companies’ Role in Alleged Danske Money Laundering a ‘Disgrace’: Whistleblower
- Update: Danske Whistleblower Says U.S., European Banks Helped Launder Money
- Explaining Danske Bank’s €200 Billion Money Laundering Scandal
- Deutsche Bank, BofA, JPM Drawn into Danske Money Laundering Probe: Sources
- Danske Bank’s Money Laundering Could Implicate Other Banks: Whistleblower Lawyer
Was this article valuable?
Here are more articles you may enjoy.