Danske Bank will face fresh round of probe from Estonia’s financial regulator over money-laundering allegations.
Under the new investigation, Estonia’s Financial Supervisory Authority (FSA) will investigate if the Danish lender deliberately withheld information on money-laundering from the regulator during inspections conducted on the alleged Estonian branch in 2014.
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The decision to investigate money-laundering allegations was taken following media reports that Danske Bank was aware of irregularities.
According to the media reports, a whistleblower alerted the bank in December 2013 about the ongoing money laundering at its Estonian branch where Lantana Trade made suspicious payments linked to Russian personalities.
In the 2014 inspections, the FSA found that the bank did not adequately analyse the non-resident client as well as the Estonian branch of Danske Bank did not provide any evidence in this process that it had conducted necessary internal analysis about the beneficiary Lantana Trade or its activities.
FSA noted that under European Union law, the supervision of Danish credit institutions is the responsibility of the respective Danish authorities.
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By GlobalDataThe Estonian financial supervisory institution holds limited responsibility with the branches of foreign banks operating in Estonia.
Following the announcement of new investigations, shares in Danske Bank slipped by more than 3%.
In December last year, Danske was fined $2m in Denmark for violating anti-money-laundering regulations.
