Wednesday, October 28, 2020

EU states force clearing of Estonian, Danish regulators over Danske Bank

-

National banking supervisors who control the European Union banking watchdog effectively forced it to clear financial regulators in Estonia and Denmark, who were investigated in relation to suspected money laundering activities by Danske Bank, a member of the European Parliament said on Wednesday.

The European Banking Authority (EBA) said in a statement on Wednesday it was closing its investigation.

“At a vote at its meeting on 16 April 2019 the EBA’s Board of Supervisors rejected a proposal for a breach of Union law recommendation,” it added.

The rejection blocked any further legal action by the EBA against the Estonian and Danish supervisors and signalled EU states’ reluctance to let the bloc’s authorities investigate the exposure of their banking systems to financial crime.

- Advertisement -

Danish and Estonian financial regulators have publicly blamed each other for the Danske Bank money laundering scandal, after Denmark’s largest bank last year admitted that 200 billion euros (£173 billion) of suspicious transactions flowed through its Estonian branch between 2007 and 2015.

The EBA in February opened a formal investigation into a possible breach of EU law by the two regulators over the Danske case, which is considered by many Europe’s largest money-laundering scandal.

All 28 national supervisors but one who sits on the watchdog’s board rejected the EBA’s recommendation, German MEP Sven Giegold told Reuters after talking to a person familiar with how the decision was taken.

The EBA declined to elaborate on the decision of the board.

The Danish and Estonian financial regulators were not immediately available for comment.
- Advertisement -

Giegold, who sits in the EU parliament’s committee on financial crime, called the decision “scandalous” and urged the EU Commission to continue the inquiry into a possible breach of EU laws by the Danish and Estonian authorities.

“We cannot accept the biggest money-laundering scandal in Europe not being properly investigated,” he said.

EU states have halted a reform of the powers of EU financial supervisors which was intended to make it more difficult for states to block EU probes into a national supervisor. A watered-down overhaul was definitively adopted on Tuesday.

BALTIC WOES

Earlier on Wednesday, the Director General of the Danish FSA Jesper Berg said he was satisfied with the closure of the EBA investigation. He said he was strengthening efforts to curb money laundering and financial crime.

The Estonian FSA also said it would continue its fight against money laundering.

The Danske scandal has reinforced calls by EU lawmakers for stronger European oversight of the union’s banking sector and tighter scrutiny of the often close relationships between regulators and the banks they oversee.

MUST READ

Beam Suntory Inc. fined $19.6 million in foreign bribery case

Beam Suntory Inc. (Beam), a Chicago-based company that produces and sells distilled beverages, has agreed to pay a criminal monetary penalty of $19,572,885 to...

Julius Baer to deny two former CEOs their bonuses over money laundering scandal

Julius Baer will withhold millions of francs in bonuses from its former chief executives Boris Collardi and Bernhard Hodler, as a result of a...

Goldman Sachs executives to cover part payments of $3 billion fines in 1MDB scandal

Nine current or former Goldman Sachs executives, including CEO David Solomon, will have to pay back hundreds of millions of dollars in compensation over...

Goldman Sachs agrees $3 billion settlement with US DoJ over 1MDB corruption scandal

Goldman Sachs has agreed to pay nearly $3bn (£2.3bn) in the US to end a probe of its role in Malaysia's 1MDB corruption scandal. The...

Hong Kong fines Goldman Sachs $350 million over 1MDB scandal

Goldman Sachs ignored multiple red flags over the multibillion-dollar fundraisings it arranged for state fund 1Malaysia Development Berhad, Hong Kong’s financial regulator said on...

Subscribe For More

Get our daily notification on the latest financial crimes news around the World

Advertisement
Advertisement

Latest News

This Week

Indonesia sentenced stockbroker to life over fraudulent investment scheme

Renowned stockbroker Benny Tjokrosaputro was sentenced to life by the Jakarta Anticorruption Court on Monday evening for his role in a major graft scandal...

Former Malawi minister sentenced to six years in prison over passport corruption scandal

A court in Malawi’s capital Lilongwe on Thursday sentenced a former home minister to six years in prison after he was found guilty in...

Actress Felicity Huffman complete full sentence for role in college admissions scam

Felicity Huffman has completed her full sentence for her involvement in the college admissions scandal. As of Sunday, she has finished her sentence, which included jail...

Texas AG Ken Paxton fires second whistleblower who accused him of bribery

A second whistleblower has been fired from the Texas attorney general’s office after reporting his boss, Texas Attorney General Ken Paxton, to law enforcement for...
Advertisement

Adblock Detected!

Our website is made possible by displaying online advertisements to our visitors. Please consider supporting us by whitelisting our website.

Enable Notifications    Ok No thanks