Danske Bank (OTCPK:DNSKF), largest bank in Denmark is accused of laundering the proceeds of criminals from Russia and other east European countries. Denmark is the country which is otherwise not considered to be involved in the financial crimes suddenly gained negative publicity.
Danske finds itself in the company of other major European banks that have been ensnared in massive laundering scandals in recent years including France's BNP Paribas and Germany's Deutsche Bank. Earlier, its Lithuanian and Latvian branches were also alleged to have been involved in money laundering.
Berlingske, Danish newspaper was investigating the trail of the fraud, when they concluded that there are 20 accounts which could be used in the money laundering activity. The bank statements from 20 companies at Danske Bank are linked to a fraud case exposed by the Russian lawyer Sergei Magnitsky, who was jailed for revealing high-ranking Russian officials involvement in stealing massive tax payments from several companies, including the investment fund Hermitage Capital
Who is Investigating the same
The recent to join the race of the investigators was the state prosecutor for Special Financial and International Crime of Denmark. Before the regulatory authority Estonian watchdogs have claimed to be investigating the money laundering matter.
In 2017, Danske Bank said that it is investigating the allegations of irregularities in Estonian Bank. The bank claims to have engaged Palantir (PALAN) for the analytics and big four accounting firms for investigation.
Quantum of Laundered Money
The total quantum of the laundered money could be well above $8 billion, but the investigation is not yet done. Bank already announced that it will donate the money to fight international crimes.
The company stock tumbled down from $40 levels to Sub $30 levels amid the controversies and investigations.