06 Feb 2019
Scandal-hit Danske Bank is looking to invest up to DKK 2 billion (about $306 million) on its financial crime prevention efforts following headline-hitting allegations that it may have been used to launder €200 billion.
The bank’s troubles are centred around the non-resident portfolio at its Estonian branch, where it said workers may have colluded with clients to launder money.
Danske outlined its ambitions and targeted investments in its financial report, saying:“On the basis of learnings from the Estonia case and a general review of our efforts and ambitions within AML, we have decided to further improve our efforts over the next three years through earmarked investments of up to DKK 2 billion.
“The purpose is to improve the quality and the efficiency of our controls while also offering a better customer experience.”
In the same report, the lender admitted it had failed to effectively handle compliance issues related to the affair, and said it had been hit badly by it all.
“The serious issues concerning the closed-down portfolio of foreign customers (the non-resident portfolio) at the Estonian branch had a negative impact on our business in a number of ways as it caused concern and criticism from a wide range of stakeholders,” the bank said.
“It is clear that we have failed to live up to our responsibility in this matter, not only in not being able to efficiently prevent suspicious activities and transactions from taking place in Estonia, but also in our inability to understand and address the issues efficiently as they came to light.”
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