With Danske bank currently embroiled in a money laundering scandal, Denmark is reportedly looking to increase fines with new legislation.
Danish Financial Supervisory Authority is planning to increase fines related to the crime by about eightfold, according to Blomberg, which cited a draft version of the bills.
The bill would have money launderers pay fines according to ‘the gravity and circumference of the offense’, with plans to take the proposal to parliament in October. A spokesperson for the regulator did not immediately responds to a request for comment.
Denmark’s largest bank is currently investigating $150bn in transactions that may have been used by companies with ties to money laundering in Russia.
Danske Bank’s non-resident portfolio at the Estonian branch has been at the centre of allegations that the bank had flawed money laundering controls from 2007 to 2015, leading to criminal investigations in both Denmark and Estonia.
The Bank has admitted to flaws in its anti-money laundering controls in Estonia and launched the inquiry last year, which is expected to be shared later this month.
“The investigations into the portfolio of non-resident customers in Estonia are being finalised, and conclusions are expected to be shared on 19 September,” a Danske spokesman said in a statement.
Earlier this month, Dutch bank ING agreed to pay €775m in fines after admitting errors in its policies to stop financial crime. Financial crime prosecutors said ING had violated laws on preventing money laundering and financing terrorism “structurally and for years”. They claim ING did not properly vet the beneficial owners of client accounts and didn’t notice unusual transactions through them.
Copyright © 2018 RegTech Analyst
Copyright © 2018 RegTech Analyst
