The multipronged investigations into money laundering activities on a massive scale at Danske Bank’s Estonia branch (DBE) have triggered a landmark regulatory response from the European Union that is certain to have repercussions for banks in the EU and globally. The DBE scandal is possibly the largest incidence of international money laundering on record. Parent Danske Bank Group’s own estimate suggests that approximately €200 billion ($227.7 billion) may have been laundered through nonresident accounts at DBE between 2007 and 2015.
Pending the outcome of investigations by Danish and Estonian authorities, the European Commission (EC) has promised much tougher anti-money laundering (AML) supervision to reinforce the stability of the banking and financial sector. CFOs and heads of finance at banks doing business in the EU already face a raft of proposed measures that would require financial institutions to strengthen their reporting systems to counter money laundering and terrorist-financing threats. The EC has already issued a printing ban on €500 notes in response to concerns that they have become the legal tender of choice for criminals.
Authors: Gerard O’Dwyer
Source: Global Finance