Estonia kicks Danske Bank out of the country after the money-laundering scandal

Estonia’s Financial Supervision Agency has ordered Danske Bank to leave the country, saying that the Danish bank’s $230 billion money-laundering scandal had marred Estonia’s financial market’s reputation.

Danske Bank said it would comply with the order that demands they leave the country within eight months. It also plans to stop offering banking services in Russia, Latvia and Lithuania.

In September, an internal report at the bank revealed it had failed for years to prevent money laundering through the Tallinn branch.

In December, the Estonian police arrested 10 former employees of Danske Bank, charging them for being involved in a network of money launderers.

Danske Bank is the largest bank in Denmark.

It also faces investigations by the US Department of Justice and other authorities. And on 18 February 2019, the European Banking Authority said it had started an investigation in both the Danish and the Estonian financial authorities for possible breach of their obligations towards Danske Bank.

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Cover: Danske Bank’s branch in Tallinn, Estonia (Wikimedia Commons).

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About the author: Sten Hankewitz

Sten Hankewitz is a lifelong journalist and Deputy Editor at Estonian World. Having lived in Estonia, Spain, the UK and all around the US, he now resides in Chicago, IL. He loves to write and besides working at Estonian World and doing some occasional blogging, he writes books and contributes to other outlets in Estonia, Israel and elsewhere. He has strong convictions and he shows them unashamedly. You can follow him on Twitter, like his page on Facebook or check out his personal blog. You can write to Sten at sten@estonianworld.com.