Dansk Bank Money Laundering Scandal (2017)
Allegations of extensive money laundering through Danske Bank’s Estonian unit surfaced in the 2017 controversy involving the bank. The biggest bank in Denmark, Danske Bank, was involved in the incident, which exposed serious supervision and control gaps in the fight against money laundering.
It was discovered that between 2007 and 2015, the Estonian branch of Danske Bank enabled the laundering of almost €200 billion (about $230 billion) in questionable funds. Most of these funds were thought to have come from illegal sources, such as organized crime earnings, tax evasion, and corruption.
Regulators in Denmark, Estonia, and other nations launched investigations as a result of the incident. The Danish Financial Supervisory Authority (FSA), the European Banking Authority (EBA), and the U.S. Department of Justice (DOJ) were among the organizations that closely monitored Danske Bank. In addition, lawsuits for damages from investors and shareholders over the issue were filed against the bank.
- Facts: Danske Bank’s Estonian office saw increased suspicious transactions between 2007 and 2015. A sizable amount of these transactions were thought to be the profits of crimes, such as tax evasion and money laundering. It was discovered that the bank’s anti-money laundering procedures were seriously lacking, allowing the illegal cash to pass through its systems almost unnoticed.
- Year: When hackers and investigative journalists revealed the scope of the illegal actions, the Danske Bank money laundering scandal came to light in 2017.
- Consequences: The affair caused a large loss of investor confidence and damaged Danske Bank’s reputation. Additionally, it sparked many investigations by Estonian, Danish, and other regulatory bodies.
- Amounts: The scandal was one of the biggest money laundering instances in history, including transactions that appeared suspicious, totaling over €200 billion.
- Awards: This case did not result in any awards. It did, however, highlight the necessity of more stringent anti-money laundering regulations and regulatory oversight in the banking industry, particularly about international trade and correspondent banking arrangements.
5 High-Profile Money Laundering Cases that Shocked the World
Money laundering is the practice of hiding the source of funds gained unlawfully. It has long been a global problem that threatens financial systems and allows criminal activity to grow. The complex webs of corruption, and greed that invades both the legal and illegal sectors have come to light in recent years due to several high-profile cases that have received international attention. Let’s explore 5 high-profile cases that shocked the world.
Table of Content
- 5 High-Profile Money Laundering Cases That Shocked the World
- 1. Bernard Madoff Ponzi Scheme (2008)
- 2. HSBC Money Laundering Scandal (2012)
- 3. Russian Laundromat (2014)
- 4. 1MDB Scandal (2015)
- 5. Dansk Bank Money Laundering Scandal (2017)
- Conclusion
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