July 11, 2018 / 9:50 AM / in 3 months

Danske Bank's compliance head quits after 'intense' work over Estonia scandal

COPENHAGEN (Reuters) - The head of compliance of Denmark’s biggest lender Danske Bank (DANSKE.CO) has resigned, saying he was leaving following an “intense” period of work that was partly due to dealing with a money laundering scandal at the bank’s Estonian branch.

FILE PHOTO: A logo for Denmark's Danske Bank is seen at the SIBOS banking and financial conference in Toronto, Ontario, Canada October 19, 2017. REUTERS/Chris Helgren/File Photo

The resignation of Anders Meinert Jorgensen, which the bank confirmed in a statement on Wednesday, adds to the list of top managers exiting after Danske Bank admitted to flaws in anti money-laundering controls in Estonia.

“There is no direct link to the money laundering case in Estonia, but it is clear that it is generally very intense to work with compliance, and especially the past year in Danske Bank has been very intense,” Jorgensen told FinansWatch.

“But for me and the bank, my decision is really quite undramatic,” he told the Danish business news website.

A Danske Bank spokesman said management had been aware of Jorgensen’s decision for some time and expected to announce his replacement before long.

Jorgensen, 43, will leave the bank in November, after being head of compliance since 2014.

Shares in Danske Bank have fallen nearly 25 percent over the last four months, as the money laundering scandal has unraveled. The shares was trading at 193.15 Danish crowns (22.92 pounds)at 1042 GMT, close their lowest levels since 2016.

Last week, Denmark’s new business minister Rasmus Jarlov said a report alleging Danske bank laundered up to $8.3 billion through its Estonian branch between 2007 and 2015 could prompt the Danish financial watchdog to open a new investigation.

Danske Bank has admitted to flaws in its anti money-laundering controls in Estonia and launched its own investigation into the case. It is due to present its own findings in September.

In April, the bank’s head of Baltic business banking and the head of business banking both left their posts.

($1 = 6.3632 Danish crowns)

Reporting by Jacob Gronholt-Pedersen; Editing by Louise Heavens and Edmund Blair

0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below