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DANSKE BANK

Danske Bank whistleblower a British ex-executive: report

The whistleblower who unveiled alleged money laundering at Danske Bank's Estonian branch has come forward as Howard Wilkinson, the British former head of the lender's market business in the Baltics, local media reported on Thursday.

Danske Bank whistleblower a British ex-executive: report
Photo: Mads Claus Rasmussen/Ritzau Scanpix

Speaking to the Danish daily Berlingske, which broke the story last year, Wilkinson said: “let me just say that when I look back on my efforts from a legal, contractual, and ethical perspective, I have absolutely no problems sleeping at night.”

More than 1.5 trillion Danish kroner (201 billion euros) transited through the Estonian subsidiary of Danske Bank between 2007 and 2015, according to an outside law firm that carried out a probe for Denmark's largest lender.

Danske Bank said it's impossible for now to say how much of the gigantic sum was dirty money, but said that it couldn't rule out that a lot of the “suspicious transactions are criminal”.

Of the around 15,000 accounts under investigation — which Danske Bank closed in 2015 — 6,200 are considered suspicious and most of them have been brought to the attention of authorities.

The bank was unable to specify exactly where the money came from. It said 23 percent of the incoming funds were from Russia.

In his whistleblower report, Wilkinson, who was head of Danske Markets in the Baltic from 2007 to 2014, described how the Estonian branch handled customers associated with top Russian politicians and companies based in Denmark, according to Berlingske.

The bank was warned for the first time in 2007, but it only began to address the problems in 2013, when Wilkinson wrote a report to the management to address the problems, the paper said.

The money laundering allegations are linked to a fraud case exposed by the Russian lawyer Sergei Magnitsky, who was jailed in Russia after he revealed the involvement of several high-ranking Russian officials in stealing massive tax payments from several companies, including the investment fund Hermitage Capital.

Magnitsky died in 2009 aged 37 after being held in a Russian jail for a year, where he was denied medical care.

READ MORE on the Danske Bank money laundering scandal

DANSKE BANK

Danish police drop money laundering case against Danske Bank directors

Denmark’s economic crime unit SØIK has dropped potential charges for money laundering against three leading former directors of Danske Bank, Denmark’s largest bank, but investigation of the bank itself continues.

Danish police drop money laundering case against Danske Bank directors
File photo: Jacob Gronholt-Pedersen/Reuters/Ritzau Scanpix

The three directors, Thomas Borgen, Henrik Ramlau-Hansen and Lars Stensgaard Mørch were investigated in relation to a scandal involving large-scale money laundering at the Estonian division of the bank.

Each of the three confirmed to newspaper Børsen that charges have been dropped.

In a written statement to media, SØIK said it had not uncovered “evidence that any individual has shown negligence to such an extent that it can be characterised as gross” and that the law had therefore not been broken.

“For an individual to be convicted under money laundering laws, they must have committed gross negligence. In this case we have conducted a vert comprehensive and thorough investigation with a number of investigative steps,” acting head of SØIK Per Flig also said in the statement.

The bank itself is still under investigation for possible breach of money laundering laws, however, Flig noted.

READ ALSO: US files lawsuit against scandal-hit Danske Bank

No individuals now remain under suspicion in the investigation, meaning SØIK has dropped cases against all leading bank executive who were suspected by police in March 2019.

Around 1,500 billion kroner from foreign customers flowed through the Estonian division of Danske Bank between 2007 and 2015, an investigation found.

A large proportion of that money is considered to be suspicious. The scandal resulted in Borgen’s resignation as CEO and the bank closed its Estonian branch in 2019.

READ ALSO: More on the Danske Bank money laundering scandal

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