21st September 2018

Chief executive of Danske Bank resigns after money-laundering investigation

It has been reported that the chief executive of Danske Bank, Thomas Borgen, has resigned in the wake of alleged money-laundering involving its Estonian operation. Mr Borgen quit following an internal investigation into payments through its Estonian branch.

The BBC reported that the Danish bank believed many of the payments were suspicious. The bank said it was unable to determine how much money was believed to have been laundered through the branch between 2007 and 2015, but it’s thought to be in the region of EUR200bn.

Mr Borgen said it was clear Danske had failed to live up to its responsibilities, which he regretted. "Even though the investigation conducted by the external law firm concludes that I have lived up to my legal obligations, I believe that it is best for all parties that I resign," he said.

Estonia's Financial Supervision Authority (FSA) is now examining the findings of Danske's internal investigation. Estonian FSA chairman Kilvar Kessler said: "The report describes serious shortcomings in the organisation of Danske Bank, where risk appetite and risk control were not in balance.”