Banks, EU – Baltic States, Financial Services

International Internet Magazine. Baltic States news & analytics Tuesday, 18.06.2019, 10:12

Danske Bank says may be investigated again in France

BC, Tallinn, 11.01.2019.Print version
Danske Bank, which is embroiled in a major money laundering case linked to its Estonian branch, may come under formal investigation for a second time in France, Estonian public broadcaster ERR reports, citing Reuters.

According to Danske, the bank has this month received a letter from an investigating judge of the French Tribunal de Grande Instance de Paris court summoning it to an interview, stating that the judge envisages placing it under formal investigation, Reuters said.

The Paris court launched an official investigation against Danske Bank in relation to the money laundering suspicion at the Estonian branch already before, but the bank's status was changed to that of "assisted witness" in January 2018.

Bill Browder, founder and CEO of investment fund Hermitage Capital Management, told reporters on Thursday he had asked French authorities to investigate Danske over alleged money laundering, rather than treating it as a witness. It is currently not known whether the planned step of the French authorities is a direct consequence of Browder's request. 

Danske Bank is already under investigation by authorities in Denmark, Estonia, Britain and the United States over suspicious payments totaling 200 billion euros made through its Estonian branch between 2007 and 2015, some of the transactions are still considered suspicious. Thomas F. Borgen, then CEO of Danske Bank, in September of 2018 decided to resign from his post due to the bank's money laundering scandal. In addition, rules and control mechanisms pertaining to the financial sector have come under closer scrutiny in many places across the European Union.

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