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Danske to face $2 billion fine for money laundering

  • Oliver Smith
  • January 06, 2020
  • 1 minute read
  • 4923
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According to Jyske Bank, Danske will probably be fined around 13.5 billion kroner (around $2 billion) over the money laundering case by authorities in Denmark, the USA, and the UK, as the investigations in Europe’s biggest money-laundering scandal draw to a close.

Danske Bank was previously indicted for suspicious transactions of 200 billion euros at there Estonian unit. The Denmark-based bank is cooperating with probes by the U.S. Department of Justice and U.S. Securities and Exchange Commission, among others. Another writ, which was filed on December 27th, 2019, in the district court of Cophengan by law firm Nemeth Sigetty, is for about 1.5 billion kroner, according to a statement.

Penalties tied to investigations will drive up Danske’s operating expenses to 42.4 billion kroner this year, according to an analyst at Jyske Bank. The costs are expected to return to normal next year.

As Danske Bank released the full dimensions of laundering scandal in September 2018, it’s shares have taken a beating. It now trades at large discounts to peers and Jyske, which recommends buying the stock, says the current price more than incorporates the consequences of the money-laundering scandal.