Money laundering in Estonia-Danske Bank pleaded guilty
2022.12.13 15:09
Money laundering in Estonia-Danske Bank pleaded guilty
Budrigannews.com – As part of an agreement with the United States to settle a lengthy investigation involving billions of dollars in illegal payments, Danske Bank pleaded guilty to bank fraud conspiracy on Tuesday and agreed to forfeit $2 billion.
The agreement with the Justice Department is the first time the United States has taken action against Denmark’s largest bank in one of the biggest money-laundering scandals in history.
After Danske’s now-defunct Estonia branch allowed approximately 212 billion euros in funds from high-risk clients in Russia and other countries to flow through the U.S. financial system, a lengthy investigation into the bank’s conduct in multiple countries ensued.
Martin Blessing, Danske’s Chairman of the Board of Directors, stated in a statement, “We have cooperated since we were approached by the authorities and accept the terms of the resolutions.” We accept full responsibility for the unacceptable past failures and misconduct that have no place at Danske Bank today and offer our sincere apologies.
More Apple gives new opportunities to competitors on its devices
The bank settled a separate civil investigation with the U.S. Securities and Exchange Commission on Tuesday in addition to its criminal plea to the Justice Department. It also settled with Danish authorities and agreed to pay the SEC $413 million in penalties and disgorgement.
The Justice Department stated that it will credit $850 million of the $2 billion for the SEC and Danish investigations.
Even though no individuals were charged on Tuesday, the Justice Department’s Assistant Attorney General for the Criminal Division, Kenneth Polite, stated that the investigation is not yet complete.
“Our investigation is still ongoing. It is progressing. In addition, our international partners’ investigations are ongoing,” Polite disclosed to Reuters during a telephone interview.
“Not only in this instance, but in all of our corporate resolutions, focusing on individual accountability is always a priority.”
In court filings, the bank let it out cheated U.S. banks somewhere in the range of 2008 and 2016 by permitting high-risk non-occupant clients from different nations, including Russia, through its Estonia branch.
The Estonia office of the bank, according to the prosecution, drew customers by promising to facilitate large transfers with minimal supervision.
According to the Justice Department, bank employees employed shell companies to conceal ownership of the funds in order to cover up the nature of the illegal transactions.
Russian and other high-risk customers were able to access U.S. banks, which collectively processed $160 billion on their behalf, by doing so.
According to the Justice Department, Danske Bank was aware of illegal transactions by at least February 2014, when they were discovered through internal audits, information from regulators, a whistleblower, and other sources.
More Way more wants to get permit for self-driving cars
According to prosecutors, the bank was also aware that its Estonian arm’s anti-money laundering program did not meet its standards.
Danske Bank has been embroiled in a money-laundering scandal for approximately five years. In October, the lender announced that it would set aside $1.9 billion to resolve investigations conducted by the SEC, the Danish Special Crime Unit, and the Justice Department.
Thomas Borgen, the former CEO of Danske Bank, was also sued by investors over the scandal; however, in November, a Danish court found him not responsible.
That decision was appealed on Monday by a group of investors who lost the lawsuit.
Polite stated to Reuters that the case is one of the department’s top five largest resolutions involving financial institutions over the past decade.
More Trade unions reduce sick leave for railway workers
However, he stated that the forfeiture is “the largest resolution that we’ve had against a financial institution” due to its size in relation to the company’s market capitalization.
Refinitiv data indicate that Danske Bank’s current market capitalization is $15.77 billion, or 110.45 billion Danish crowns.
(7.0034 Danish crowns for $1)
