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Danske Bank shares fall after new details of money laundering scandal revealed

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Danske Bank shares fall after new details of money laundering scandal revealed
File photo: Thomas Lekfeldt/Ritzau Scanpix
10:56 CEST+02:00
Shares in Denmark’s Danske Bank fell on Tuesday morning following a report that over 190 billion kroner was laundered through the bank’s branch in Estonia.

A seven per cent fall in the bank’s share price was reported early on Tuesday, Ritzau reports.

The cost of a share in the bank has fallen 24 percent overall since the beginning of this year.

The Financial Times reported on Monday that as much as $30 billion of Russian and ex-Soviet money flowed through Danske Bank's Estonian branch in a single year. The Financial Times report is based on a draft report commissioned by Danske Bank and seen by the newspaper.

Danish newspaper Berlingske has previously reported 53 billion kroner to have been laundered through the bank.

Authorities in both Denmark and Estonia are currently conducting investigations into the issue.

The fall in share price reflects fears that Danske Bank will be hit with a significant fine and that CEO Thomas Borgen, who was in charge of international banking at the time the irregularities occurred, could be fired, Ritzau reports.

Danske Bank is due to publish two reports into the money-laundering scandal this month, FT writes. One report will be centred on the details of the suspicious transaction, while the second will be into the bank’s governance.

READ ALSO: Denmark announces probe against Danske Bank over money laundering

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