Financial authority to close Danske Estonia branch

The former branch of Danske Bank, on Narva mnt in central Tallinn, closed in 2019. Source: Anna Aurelia Minev/ERR

ERR has learned that the Estonian Financial Supervisory Authority (FSA) has issued a precept which requires the Estonian branch of Danske Bank to close.

The Tallinn branch of Danske, a Danish-owned bank, has been at the centre of a money laundering scandal. Around €200 billion in potentially illicit funds, principally from the Russian Federation and other former Soviet nations, is thought to have passed through the branch between 2007 and 2015.

The story came to light through the course of 2018, causing Danske chief Thomas Borgen to resign, and the arrest of 10 Danske Estonia employees and former employees.

The Danish financial authority is reportedly set to overhaul its own regulatory processes and procedures, and the regulatory bodies of several other EU nations is similarly likely to be the subject of scrutiny.

Investigations related to Danske and money laundering activities have been conducted in the UK, France, Germany and the US, in addition to Estonia and Denmark.

The FSA is set to provide more details on the closure later on Tuesday.

Editor: Andrew Whyte

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