Danske Bank has not sufficiently assessed the risk of how the bank’s products and services in Sweden may be used for money laundering and terrorist financing and it must remedy these shortcomings by 30 June 2022, the Swedish Financial Supervisory Authority has said in a strongly worded statement on 20 October.
The move comes when the bank awaits the results of investigations by US regulators and other organizations, even though Denmark dropped all criminal charges against top executives earlier this year.
Danske Bank’s money laundering scandal arose in 2017-2018, when it revealed that approximately EUR 200 billion of suspicious transactions had flowed from Estonian, Russian, Latvian and other sources through the Estonian bank branch to Danish Danske Bank from 2007 to 2015.
FI believes that the bank is taking too long to implement the measures. Therefore, FI issues an injunction on Danske Bank to take corrective action. ”
It has been described as possibly the biggest money laundering scandal ever in Europe and possibly the biggest in world history.
Finansinspektionen or Finansinspektionen (FI) initiated an investigation in June 2020 with the aim of investigating compliance with the Government’s anti-money laundering law and its regulations.
The inquiry had identified shortcomings in Danske Bank’s work to combat money laundering and terrorist financing, it is said.
“The bank has remedied some of the shortcomings and presented action plans for, among other things, the insufficient general risk assessment and how the bank’s products and services may be used for money laundering. FI, however, takes the position that the bank takes too long to implement the measures. Bank to take corrective action. “
Karin Lundberg, CEO of FI’s banking section, says: “The general risk assessment is crucial for how a bank designs its work to combat money laundering and terrorist financing, as it lays the foundation for significant parts of the bank’s other measures in this area. That is why It is very important that the Bank rectifies this shortcoming immediately. “
On the website for its website, Danske Bank has a section covering “Addressing older issues” which states: “Being a large Nordic financial institution with more than 22,000 employees and 3.3 million customers, operational problems and errors will unfortunately occur from time to time It is our commitment to our customers that we work hard to avoid them altogether and to make sure to correct them as soon as we identify them.
But in our efforts to become a better bank, we have in recent years systematically improved our compliance, risk and control capacities and processes and tried to promote a management culture where potential issues are addressed and addressed. As a result, a number of older problems have been identified where errors have or may have led to bad outcomes or losses for our customers – for example the debt collection issue.
We apologize for any damage that these problems may have caused our customers and that we did not fix the errors earlier. We are committed to correcting them and ensuring that all Danske Bank customers who have suffered a loss due to our errors receive compensation. “