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Danske Bank has pleaded guilty to bank fraud in connection with a major money-laundering scandal to US prosecutors. So the Danish bank is paying a fine of 2 billion dollars (1.9 billion euros), it was announced on Tuesday.
For years, Danke Bank failed to investigate suspicious cash flows through its Estonian subsidiary. Since 2014 it is clear that foreign criminals are laundering a lot of money through Estonia.
As a result, $160 billion in potential money laundering also passed through the US financial system. The U.S. Department of Justice writes that while U.S. banks thought Danske Bank had the controls in place to prevent this.
“For years, Danske Bank misled and lied to American banks to pump billions of dollars of suspicious and criminal money through the American financial system,” said New York attorney Damian Williams. According to him, Danske Bank broke the law from pure profit and facilitated the financing of criminals.
Also money for investors
At the same time as the settlement with the Justice Department was announced, the SEC also announced that Danske Bank would pay $413 million for misleading investors in the United States. The bank has reached a settlement with authorities in its home country of Denmark.
Danske Bank admitted in 2018 that cash flows through a subsidiary in Estonia were often suspicious. In total, it is about 200 billion euros, which ended up in the accounts of the Estonian branch from abroad. In October, the company announced it had earmarked $1.9 billion for a major settlement surrounding the money laundering scandal.
Dutch banks have also received heavy fines for laxity in money laundering checks. In 2018 ING reached a settlement with the Public Prosecution Service of 775 million euros for “gross negligence”. ABN AMRO had to pay a fine of 480 million euros in a settlement last year.
Last week was known Rabobank has been named by the Public Prosecution Service as a suspect for lack of adequate anti-money laundering controls.
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