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The Wall Street Journal: Russian and Soviet ties escalate investigator interest in $150 billion in transactions at Estonian branch of Danish bank

Investigators at Denmark’s largest bank are finding out around $150 billion of transactions that flowed through its Estonian outpost between 2007 and 2015 as a part of an inner money-laundering probe, in keeping with other people familiar with the matter.

Much of that figure, which dwarfs Estonia’s overall deposits, came from corporations with ties to Russia and the previous Soviet Union.

Danske Bank A/S DNKEY, -Four.86% DSN, -0.60% has been criticized via its regulator for lax oversight of illicit cash flows. The bank’s investigators haven’t determined if all $150 billion handled via non-Estonian entities will have to be deemed suspicious. But the sort of huge glide of money means that roughly $eight billion of suspected money-laundering transactions up to now reported via a Danish newspaper may grow upper.

Shares in the bank traded down more than 7% on Friday after the Wall Street Journal reported on the scope of the investigation.

The $150 billion figure, which has been offered to the bank’s board of directors, is a considerable sum bearing in mind Estonia’s entire banking gadget experiences overall deposits of €17 billion ($19 billion). Even in the context of Russia, the suspected source of one of the budget, the figure would represent more than a yr’s value of the rustic’s company profits. The flows would have stayed in the department for simplest a short while before leaving Estonia, in keeping with an individual familiar with the investigation, so wouldn’t absolutely display up in legitimate statistics.

An expanded version of this report seems at WSJ.com.

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