Banks, Estonia, EU – Baltic States, EU – CIS, Financial Services, Legislation

As the bank is not able to provide an accurate estimate of the amount of suspicious transactions made by non-resident customers in Estonia during the period, the board of directors has decided to donate the gross income from the customers in the period from 2007 to 2015, which is estimated at 1.5 bn Danish kroner or approximately 200 mln euros, to an independent foundation which will be set up to support initiatives aimed at combating international financial crime, including money laundering, also in Denmark and Estonia. 

The donation will be expensed in the third quarter of 2018.

Danske thus now expects net profit for 2018 to be in the range of 16 to 17 bn kroner. In addition to the donation, the outlook revision is owing to the continuation of the subdued development in net trading income. When Danske announced its financial results for the first half of 2018, the bank expected net profit for 2018 to be at the lower end of the 18-20 bn kroner range.

Ole Andersen, chairman of the board of directors at Danske Bank, affirmed at a press conference on Wednesday that some employees must pay back the premiums paid to them. Andersen explained that in the framework of the investigation, mistakes have been detected among both Estonian and Danish employees. Some of them no longer work at Danske, but necessary steps will be taken in relation to those who still work at the bank.

Danske Bank at a press conference on Wednesday published the results of a year-long internal audit that concerns possible money-laundering in the bank's Estonian branch from 2007 to 2015 and during which up to 30 billion U.S. dollars may have been laundered. Thomas F. Borgen, CEO of Danske Bank, on Wednesday morning informed the board of directors that he wishes to resign from his position at Danske Bank.

The suspected money-laundering sums that flowed through the accounts from 2012 to 2014 have been ever increasing during the year-long investigation, Postimees said. The daily in its articles has shown that the sum total of dirty money from Azerbaijan and Russia amounted to at least 8 bn euros in Danske's Estonian branch.