U.S. legislation enforcement companies have began their cash laundering investigations of Danske Bank, Denmark’s largest financial institution, in response to the Wall Street Journal. Citigroup and Deutsche Bank have been implicated. Danske Bank can also be presently beneath investigation by Denmark and Estonia and its CEO reportedly ignored warnings of suspicious transactions.
$150 Billion Money Laundering Case
The Wall Street Journal reported on Friday, September 14, that “The [U.S.] Justice Department, Treasury Department, and Securities and Exchange Commission [SEC] are each examining Danske Bank after a confidential whistleblower complaint was filed to the SEC more than two years ago,” citing an individual accustomed to the matter. According to the individual and the paperwork the information outlet has reviewed:
U.S. legislation enforcement companies are probing Denmark’s largest financial institution over allegations of large cash laundering flows from Russia and former Soviet states…U.S. involvement within the case significantly raises the stakes for Danske Bank.
An estimated $150 billion are suspected to have flowed by way of non-Estonian buyer accounts held at Danske Bank’s Estonian department from 2007 to 2015 – from international locations comparable to Russia, Azerbaijan, and Moldova. The publication added that the financial institution’s investigators haven’t revealed if the complete quantity must be considered as suspicious. The financial institution has been conducting an inner investigation and can launch the outcomes on September 19, a discover on its web site states.
Danish and Estonian authorities have been investigating the financial institution and have shared info with their U.S. counterparts, a number of European officers accustomed to the matter advised the information outlet.
Why Is the US Interested?
The U.S. has but to formally confirmed that it’s investigating Danske Bank. Two weeks in the past, Marshall Billingslea, U.S. Department of the Treasury’s Assistant Secretary for Terrorist Financing, advised Danish every day Berlingske “We are following this case very closely.” Reuters elaborated:
While the financial institution doesn’t have a banking license within the United States, it has a bond program in and its Estonian department noticed U.S. greenback buyer flows, which may heighten curiosity amongst U.S. regulators.
The Wall Street Journal defined that the U.S. Treasury can limit the provision of U.S. to overseas banks and the Treasury and Justice Department can nice banks.
Adam Barrass, an analyst at Berenberg, famous again in July that the important thing threat to Danske Bank was “the potential U.S. fine because [of] Danske’s use of dollar funding and transactions,” the Financial Times reported.
CEO Ignores Money Laundering Signs
According to the Financial Times, Danske Bank’s CEO, Thomas Borgen, ignored calls to cut back enterprise on the Estonian department when warned of cash laundering actions. The minutes seen by the information outlet reveals that the CEO was knowledgeable at a gathering in October 2013 that:
The stage of exercise in its [Danske Bank’s] Estonian department from outdoors the nation — largely from ex-Soviet states and Russia — was larger than that of rivals and ‘needed to be reviewed and potentially reduced’.
Danske Bank’s CEO, Thomas Borgen.
Instead, Borgen responded by emphasizing “the need for a middle ground, and wanted to discuss this further outside of this forum,” the publication famous.
The Wall Street Journal moreover detailed, “Estonian officials are investigating 26 former Danske employees, from low-level staff to the former branch CEO. They are accused of helping to launder $230 million in money from an alleged fraud committed in Russia.”
Deutsche Bank and Citigroup Implicated
Citing the individual accustomed to the probes, the Wall Street Journal additionally reported:
The whistleblower criticism recognized Deutsche Bank AG and Citigroup Inc., each overseen by U.S. regulators, as concerned with transactions into and out of Danske Bank’s Estonian department.
Deutsche Bank acted as a correspondent financial institution for Danske, dealing with greenback wire transfers whereas Citigroup’s Moscow workplace was concerned in a number of the transfers by way of Danske Bank’s Estonian department, the individual advised the publication.
With the continuing probes, the financial institution’s share value has been on a pointy decline this 12 months.
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Original article first appeared in https://information.bitcoin.com/money-laundering-danske-bank-citigroup-deutsche-bank/