Danske Bank

Between 2007 and 2015, Danske Bank, Denmark's leading financial institution, actively participated in the largest money laundering scheme in Europe. More than EUR 200 billion of suspicious payments passed through its Estonian branch with the knowledge of the bank’s top management.

The scandal emerged only in February 2018, following various press reports, while the seriousness of the situation had already been known among the bank’s top management for a significant period of time. A whistle-blower report had conveyed serious money laundering concerns to the board in December 2013. Additionally, in February 2014, the conclusions of an internal audit were communicated to and discussed by the bank’s top management.

The former CEO of Danske Bank had also overseen the Estonian branch during the money laundering operation. Despite red flags having been raised as early as 2007, and a number of investigations performed by local regulatory authorities over the years, Danske Bank only took steps to shut down the non-resident portfolio of its Estonian branch in December 2015. It would later appear that the bank continuously misled local regulators. The bank settled with the U.S. Securities Exchange Commission and the U.S. Department of Justice. As of today, not a single senior executive has been held accountable.

Deminor believes that investors were misled, from at least February 2014 onwards. This means investors have a viable cause of action against the bank and its (former) officers, for the losses suffered as a result of the corrective disclosures made as from February 2018.

Deminor filed a complaint with the local courts of Denmark on behalf of a group of 74 legal entities representing 155 institutional investors. They seek damages in the amount DKK 3,1 billion (approximately EUR 424 m) from Danske Bank and its former CEO. The auditors, the (former) members of the senior management and various other potential defendants were also formally notified of the claims.