US 'following' Danish bank money laundering case

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Allegations that Denmark's biggest lender had been involved in money laundering through its Estonian branch have caught the attention of US authorities.

Estonian and Danish prosecutors have started criminal investigations into Danske Bank concerning transactions worth billions of Danish crowns that might have been part of criminal money laundering.

Investors are watching for signs of a possible US-led fine, which would be another big hit to the bank, which has seen its shares fall by more than a fifth over the past six months as the scandal has unraveled.

"We are following this case very closely," Assistant Secretary for Terrorist Financing at the US Department of the Treasury, Marshall Billingslea, told Danish daily Berlingske.

He declined to confirm whether US authorities had started an investigation into Danske Bank, which is being probed in both Denmark and Estonia.

"But we have a close cooperation with the authorities here in Denmark, as well as in Estonia," he told the newspaper.

A Danske spokesman declined to comment on a potential dialogue between the bank and US authorities, according to Berlingske.

"It is completely natural that there is interest for the case in Estonia from different authorities including the US," he was quoted as saying.

The bank has admitted to flaws in its anti-money laundering controls in Estonia and has launched its own investigation, the results of which are expected in September.

While the bank does not have a banking license in the United States, it has a bond programme in dollars and its Estonian branch saw US dollar customer flows, which could heighten interest among US regulators.

For now, analysts on average put estimates for potential fines at roughly 4 billion Danish crowns (628 million US dollars).

Source(s): Reuters