On top of the numerous accounts of noncompliance Danske bank has recently been involved with, French court Tribunal Grande Instance de Paris has charged the bank for its relationship to a $230 million money laundering scheme at its Estonian location between 2008 and 2011.
This ongoing money laundering scandal has made it alarmingly clear that the bank’s lack of compliance technology and regulations are easily letting crime slide through their business. Over 15 million euros worth of transactions were transferred to France by a former Danske Bank Estonia customer from 2008 to 2011.
The accounts linked to the case were part of a portfolio of foreign customers at Danske Bank Estonia and as a result all of the accounts related to the situation have been terminated. Although the issue has not been fully resolved, the bank claims its Estonian office is now compliant and up to date with anti-money laundering (AML) regulations.
This case easily could have been avoided if the bank had a proper compliance solution. AML software would have alerted the bank to the risky foreign profile when it first appeared. Risk management systems are essential for an organization to function compliantly because it allows businesses to prepare for the unexpected, minimizing risks and extra costs before they happen.
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