(3 May 2018 – Europe) Danish regulators have criticised Danske Bank over its weak or non-existent anti-money laundering controls.
The Danish Financial Supervisory Authority (FSA) ordered the country’s largest bank to set aside DKr 5 bn ($800m) in capital to cover compliance matters, alongside eight reprimands and eight orders over money laundering allegations in its Estonian operations.
The FSA said Danske suffered from “serious weaknesses in the bank’s governance” that meant the bank “is exposed to significantly higher compliance and reputational risks than previously assessed”.
The Danish bank launched its own investigation last year into the allegations that its Estonian branch was used from 2007-2015 for money laundering from countries including Russia, Azerbaijan and Moldova.