Money laundering could affect financial stability, Danish central bank warns
03 Dec 2018

A money laundering scandal at Danske Bank (DANSKE.CO) involving billions of euros of suspicious flows is serious enough to potentially affect the country’s financial stability, the central bank warned on Friday.

Denmark’s state prosecutor filed preliminary charges on Wednesday against Danske Bank, Denmark’s largest lender with a balance sheet 1-1/2 times Danish gross domestic product, for alleged violations of the country’s anti-money laundering act in relation to its Estonian branch.

In a report published on Friday the central bank said money laundering issues at a single bank could spread to the entire financial sector.

“It’s a question of trust, if there is a spillover effect to the rest of the sector. We haven’t seen that yet, but that is the concern,” Karsten Biltoft, assistant governor and head of financial stability, told Reuters.

– By Teis Jensen and Jacob Gronholt-Pedersen, Reuters, 30 November 2018.

Link to Reuters.

You can claim CPD minutes for reading this article, by signing up to our CPD Wallet

No Responses to “Money laundering could affect financial stability, Danish central bank warns”

You must be logged in to post a comment.

This site uses Akismet to reduce spam. Learn how your comment data is processed.