London Daily

Focus on the big picture.
Friday, Aug 01, 2025

Danske Bank: what went wrong?

Danske Bank: what went wrong?

It is hard to imagine that after so much sectoral investment in combatting financial crime that a bank laundered hundreds of billions of euros over a 9 year period from 2007.

The scandal rocked the banking industry. But how did it happen? What were the failures of people, process and technology that led to Europe’s largest money laundering scandal?

In our latest white paper, we’re exploring how Danske Bank came to be embroiled in one of the world’s largest money laundering scandals as a result of activities at its Estonian branch.

A report commissioned by the bank and published in 2018 identified failure of the bank’s lines of defence against money laundering and criminal activity. There were significant areas of weakness in AML procedure and governance on the part of the bank, including the following issues:

*  AML procedures in the Estonian branch were manifestly insufficient and inadequate
    *  There was a lack of identification of ultimate beneficial owners (UBOs)
    *  Lack of screening of customers
    *  Lack of response to negative media reports pertaining to customers
    *  Limited reporting of suspicious customers and transactions to authorities
*  Possible collusion with customers on the part of employees of the Estonian branch.
*  Breaches of legal obligations on the part of employees at the Estonian branch and at group level
*  Lack of integration of the Estonian branch into the Danske Bank group; including but not limited to migration onto the group IT systems
*  Lack of oversight of the Estonian branch by the parent company
*  Over-reliance on positive reports emanating directly from the Estonian branch and lack of verification of these reports by the bank
*  Insufficient focus on the risk of money laundering. Branch management was more concerned with box-ticking procedure than identifying actual risk
*  Missed opportunities to remedy, address or investigate claims of money laundering and criminal activity emanating from Estonian and Danish regulatory bodies and correspondent banks
*  Failure to properly investigate, conclude and report on whistle-blower reports
*  The Group was slow to realise the problems and rectify the shortcomings. Any initiatives taken at the time were too little, too late.

To read the full root cause analysis of the problems that allowed billions of euros to be laundered over recent years, please download the full report.

Newsletter

Related Articles

0:00
0:00
Close
JD.com Launches €2.2 Billion Bid for German Electronics Retailer Ceconomy
Azerbaijan Proceeds with Plan to Legalise Casinos on Artificial Islands
Former Judge Charged After Drunk Driving Crash Kills Comedian in Brazil
Jeff Bezos hasn’t paid a dollar in taxes for decades. He makes billions and pays $0 in taxes, LEGALLY
China Increases Use of Exit Bans Amid Rising U.S. Tensions
IMF Upgrades Global Growth Forecast as Weaker Dollar Supports Outlook
Procter & Gamble to Raise U.S. Prices to Offset One‑Billion‑Dollar Tariff Cost
House Republicans Move to Defund OECD Over Global Tax Dispute
Botswana Seeks Controlling Stake in De Beers as Anglo American Prepares Exit
Trump Administration Proposes Repeal of Obama‑Era Endangerment Finding, Dismantling Regulatory Basis for CO₂ Emissions Limits
France Opens Criminal Investigation into X Over Algorithm Manipulation Allegations
A family has been arrested in the UK for displaying the British flag
Mel Gibson refuses to work with Robert De Niro, saying, "Keep that woke clown away from me."
Trump Steamrolls EU in Landmark Trade Win: US–EU Trade Deal Imposes 15% Tariff on European Imports
ChatGPT CEO Sam Altman says people share personal info with ChatGPT but don’t know chats can be used as court evidence in legal cases.
The British propaganda channel BBC News lies again.
Deputy attorney general's second day of meeting with Ghislaine Maxwell has concluded
Controversial March in Switzerland Features Men Dressed in Nazi Uniforms
Politics is a good business: Barack Obama’s Reported Net Worth Growth, 1990–2025
Thai Civilian Death Toll Rises to 12 in Cambodian Cross-Border Attacks
TSUNAMI: Trump Just Crossed the Rubicon—And There’s No Turning Back
Over 120 Criminal Cases Dismissed in Boston Amid Public Defender Shortage
UN's Top Court Declares Environmental Protection a Legal Obligation Under International Law
"Crazy Thing": OpenAI's Sam Altman Warns Of AI Voice Fraud Crisis In Banking
The Podcaster Who Accidentally Revealed He Earns Over $10 Million a Year
Trump Announces $550 Billion Japanese Investment and New Trade Agreements with Indonesia and the Philippines
US Treasury Secretary Calls for Institutional Review of Federal Reserve Amid AI‑Driven Growth Expectations
UK Government Considers Dropping Demand for Apple Encryption Backdoor
Severe Flooding in South Korea Claims Lives Amid Ongoing Rescue Operations
Japanese Man Discovers Family Connection Through DNA Testing After Decades of Separation
Russia Signals Openness to Ukraine Peace Talks Amid Escalating Drone Warfare
Switzerland Implements Ban on Mammography Screening
Japanese Prime Minister Vows to Stay After Coalition Loses Upper House Majority
Pogacar Extends Dominance with Stage Fifteen Triumph at Tour de France
CEO Resigns Amid Controversy Over Relationship with HR Executive
Man Dies After Being Pulled Into MRI Machine Due to Metal Chain in New York Clinic
NVIDIA Achieves $4 Trillion Valuation Amid AI Demand
US Revokes Visas of Brazilian Corrupted Judges Amid Fake Bolsonaro Investigation
U.S. Congress Approves Rescissions Act Cutting Federal Funding for NPR and PBS
North Korea Restricts Foreign Tourist Access to New Seaside Resort
Brazil's Supreme Court Imposes Radical Restrictions on Former President Bolsonaro
Centrist Criticism of von der Leyen Resurfaces as she Survives EU Confidence Vote
Judge Criticizes DOJ Over Secrecy in Dropping Charges Against Gang Leader
Apple Closes $16.5 Billion Tax Dispute With Ireland
Von der Leyen Faces Setback Over €2 Trillion EU Budget Proposal
UK and Germany Collaborate on Global Military Equipment Sales
Trump Plans Over 10% Tariffs on African and Caribbean Nations
Flying Taxi CEO Reclaims Billionaire Status After Stock Surge
Epstein Files Deepen Republican Party Divide
Zuckerberg Faces $8 Billion Privacy Lawsuit From Meta Shareholders
×