8th April 2019

Europe’s largest money laundering scandal

This week we take a brief Brexit respite to focus on what could be the biggest money laundering scandal in history. Between 2007-2015 around €200bn of non-residential flows was passed through Danske Bank’s Estonian branch unchecked. The Danish firm bought Sabro bank in 2007 to expand its Baltic operations but was warned prior to purchase by Russia’s central bank of fraudulent activity which it ignored.

Subsequently, the branch wasn’t onboarded onto the groups IT platform in 2008 to save costs which meant the branch didn’t have to adhere to anti-money laundering procedures. In 2011 The region generated 11% of profits even though it accounted for 0.5% of the bank’s total assets.

 

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