The CEO of Denmark's biggest bank is out after a $235 billion money laundering scandal

pulse

September 19, 2018 10:06 AM

Danske Bank on Wednesday released the initial findings of an internal investigation into activities in Estonia, saying that a "series of major deficencies" had allowed the Estonian branch of the bank to be used for "suspicious transactions" in the period between 2007 and 2015.

CEO of Denmark's largest bank steps down over Estonian money laundering scandal.
Thomas Borgen resigned after an investigation into the scandal which could have impacted €200 billion ($234 billion) of transactions.
Danske Bank has so far identified 6,200 customers who may have been involved in suspicious activity, undertaken via its Estonian branch.

Danske Bank, which has total assets of around €475 billion ($556 billion), on Wednesday released the initial findings of an internal investigation into activities in Estonia, saying that a "series of major deficiencies" had allowed the Estonian branch of the bank to be used for "

Borgen, who had been at the bank's helm since 2013, said in a statement that while the investigation found no legal wrongdoing from him, he believed the best course of action was to stand down."It is clear that Danske Bank has failed to live up to its responsibility in the case of possible money laundering in Estonia," he said.

"I deeply regret this. Even though the investigation conducted by the external law firm concludes that I have lived up to my legal obligations, I believe that it is best for all parties that I resign."

Danske Bank's investigation into suspicious transactions at the Estonian branch centres around so-called "non-resident" transactions — effectively transactions done by people not based in Estonia but using the bank's facilities there.

It said that it has so far identified

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