The funds from the fine will be directed toward strengthening the prevention, detection and investigation of financial crimes, including money laundering, cybercrime and the financing of terrorism, according to the Ministry of Justice and Digital Affairs.

Tõnis Saar, the ministry's secretary general, said the agreement will enhance Estonia's and the broader region's capacity to combat financial crime.

"The financial resources will help us further raise awareness and develop the skills of our specialists, which are necessary to fight money laundering, serious financial crimes and cybercrime. Our cooperation with the U.S. is invaluable and this agreement confirms our shared commitment to upholding the principles of the rule of law globally," Saar explained.

The agreement stipulates that the funds must be used to develop systems for investigating and preventing financial crimes, organize specialized training for law enforcement officials and improve compliance with regulations aimed at countering money laundering and the financing of terrorism. Another goal is to strengthen international cooperation in asset confiscation processes.

Cooperation with the U.S. on the investigation of the Danske Bank money laundering case was a politically sensitive issue during the terms of both Jüri Ratas' government and the first government led by Kaja Kallas. Estonia worked closely with U.S. law enforcement agencies on the Danske Bank investigation, but the key question of whether Estonia could receive a share of the fines imposed in the U.S. became a subject of domestic debate.

Danske Bank admitted guilt in the U.S. investigation for bank fraud carried out through its Estonian branch. The bank agreed to pay more than $2 billion in fines. Additionally, Danske Bank accepted a settlement with the U.S. Securities and Exchange Commission (SEC), agreeing to pay $413 million.

In Estonia, a trial began in November 2023 involving six individuals charged by the Prosecutor's Office with money laundering crimes at the Estonian branch of Danske Bank. According to the charges, five men and one woman — former employees of the Estonian branch's non-resident banking unit — jointly organized large-scale money laundering at the branch between 2007 and 2015, deliberately concealing the true owners of the suspicious funds transferred through Danske Bank Estonia's accounts as well as the origin and nature of the criminal proceeds.

According to evidence gathered during the pre-trial investigation, the accused provided money laundering services for at least $1.6 billion and €6 million.

Foreign Minister Margus Tsahkna (Eesti 200) said the decision of the United States to allocate $50 million to Estonia from the fine imposed on Danske Bank shows that the relations of Estonia and USA are strong and that cooperation is effective in every area.

"The United States of America is a close ally of Estonia and while we often think of political and defense cooperation, the decision on the fine imposed on Danske Bank shows that the relations between our countries are also strong in law enforcement," Tsahkna said.

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