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Danske Bank value plummets in midst of money laundering scandal

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Danske Bank value plummets in midst of money laundering scandal
File photo: Mads Claus Rasmussen/Ritzau Scanpix
17:54 CEST+02:00
Following a depreciation in share price on Tuesday, Danske Bank, Denmark’s biggest lender, has now seen its market value fall by 100 billion kroner since the beginning of the year.

During 2018, the bank has faced reports of possible money laundering related to more than 200 billion euros transferred through its Estonian branch.

Former CEO Thomas F. Borgen has since left his position with the bank.

On Tuesday morning, shares in the bank fell by 1.5 percent to 128.50 kroner, making Danske Bank 101.3 billion kroner -- equivalent to 47 percent -- less valuable since the beginning of the year.

The bank’s total value on the stock exchange as of Tuesday morning was 115.1 billion kroner.

Following an internally-commissioned investigation, it said last month that it said "a large part" of transactions totalling 200 billion euros at its Estonian branch between 2007 and 2015 were "suspicious".

Authorities in Estonia, Denmark, the United Kingdom and the United States are all looking into the irregularities, and the European Commission has also called for a probe.

The current pressure on the bank’s share price is related to potentially large fines for lack of regulation or potential illegalities at the Estonian branch, Ritzau writes.

READ ALSO: What you need to know about Danske Bank's mushrooming money laundering scandal

 
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