Correspondent Banks in Crosshairs as Danske Case Raises Alarm
- Denmark, where Danske is based, is making new demands on banks
- Whistle-blower testimony points to a large, complex laundromat
The headquarters of Danske Bank A/S stand in Copenhagen.
Photographer: Freya Ingrid Morales/BloombergThis article is for subscribers only.
The financial regulator of Danske Bank A/S says it’s now telling lenders to be more selective when choosing correspondent banks.
The decision comes after Denmark’s biggest bank ended up at the center of one of Europe’s worst ever money laundering scandals. Danske’s regulator says some of the bank’s employees were probably involved in “criminal” acts, and the lender may be facing hefty fines as it awaits the outcome of a U.S. Justice Department investigation.