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Danske Bank and CEO Sued for AML

Posted on January 9, 2019 at 4:55 PM
From Reuters Legal Danske Bank A/S and four former top executives were sued by a U.S. shareholder that accused Denmark's largest bank of defrauding investors and inflating its share price by hiding and failing to stop widespread money laundering at its Estonian branch. The complaint filed in the U.S. District Court in Manhattan by a New York pension fund that is seeking class-action status and damages for investors in Danske's American depositary shares from Jan. 9, 2014 to Oct. 23, 2018. Danske is accused of "intentionally less than forthcoming" to Danish regulators even after a whistleblower alerted the Copenhagen-based bank to suspected money laundering, while overstating its legitimate profitability and ability to thwart misconduct. The bank did not immediately respond to requests for comment after market hours in Europe on behalf of the defendants, who include former Chief Executive Thomas Borgen, former Chairman Ole Andersen, and two former chief financial officers. Borgen resigned last Sept. 19, when Danske said an internal probe had uncovered about 200 billion euros (US$231 billion) of payments made from 2007 to 2015 through its small Estonian branch, and that many payments appeared suspicious. Andersen was replaced in December. Read More: https://www.reuters.com/article/us-danske-bank-lawsuit/danske-bank-ex-ceo-are-sued-in-u-s-over-money-laundering-scandal-idUSKCN1P32CF

Categories: AML and Sanctions