CASE STUDY

DANSKE BANK

Postscript

 

In September 2018, Danske Bank published a report of its own independent legal inquiry (the Bruun & Hjejle report). The report concluded that non-resident customers had completed transactions totaling roughly EUR 200 billion through the Estonian branch in the period 2007-2015, and that a large proportion were suspicious and potentially illegal money laundering activities.

 

The investigation also found 42 employees and agents were involved in suspicious activity, and they were subsequently reported to the Estonian Financial Intelligence Unit in accordance with Estonian law. In addition, eight former employees were reported to the Estonian police by Danske Bank for suspected criminal acts. In December 2018, ten former employees of the branch were arrested in Estonia.

 

In October 2018, Thomas Borgen was fired as CEO. Several weeks later, the DFSA blocked the Board of Director’s unanimous choice of Jacob Aarup-Andersen to be Danske Bank’s next CEO. Although he was head of the wealth management unit and the former CFO, the DFSA believed that Aarup-Andersen lacked sufficient experience “within Danske Bank’s business areas.”

 

In November 2018, Ole Andersen was ousted as Danske’s chairman by the bank’s main shareholder, the Maersk family.

 

In May 2019, the Board of Directors appointed Chris Vogelzang, the former head of ABN Amro’s retail and private banking operations, as Danske Bank’s new CEO.

 

The bank continues to be subject to multiple legal inquiries, including a criminal investigation by the U.S. Department of Justice.