Former Danske CEO cleared in Tallinn branch money laundering civil suit

Thomas Borgen.
Thomas Borgen. Source: ERR

Former CEO of Danske Bank Thomas Borgen has been acquitted in a civil suit relating to large-scale money laundering at the bank's now-defunct Estonian branch, Bloomberg reports.

A court in Denmark has ruled that Borgen, who was CEO 2013-2018, was unaware of the money laundering activities, thought to have involved in excess of €230 billion in potentially illicit cash-flows, Bloomberg reports.

Danske shareholders claimed Borgen bore responsibility for the management of the Tallinn branch, which closed in late 2019, a claim which the court overruled.

The civil case closure follows a criminal case last year, in which Borgen was also cleared.

The court found that only the bank itself can file civil claims, not its individual shareholders, in the case of charges of irresponsible management.

The court also did not establish that Borgen could or should have had access to information which would have affected the bank's stock to a significant extent.

The shareholders, who had also claimed they suffered losses since they acquired shares at an inflated price, given that Danske had not disclosed the issues with the Tallinn branch, had demanded compensation totaling 2.4 billion Danish kroner (approximately €233 million) from Borgen himself.

Danske announced last month that it was nearing completion of its analysis of the suspicious transactions at the heart of the scandal.

In 2018, it was revealed that Danske had ignored previous warnings of suspected money laundering.

The Danske money laundering via the Tallinn took place 2008-2015. Borgen resigned in 2018 following the scandal coming to light.


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Editor: Andrew Whyte

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