October 31, 2018 / 9:24 AM / 10 months ago

Estonian financial sector little impacted by Danske scandal: central bank

General view of the Danske Bank building in Copenhagen, Denmark, September 27, 2018. REUTERS/Jacob Gronholt-Pedersen

(Reuters) - Estonia’s financial sector has so far been little impacted by the $230 billion money laundering scandal related to lender Danske Bank, the central bank said on Wednesday.

“The impact of the money laundering scandal on the Estonian financial sector overall remains small,” the Bank of Estonia said in a statement.

The scandal involves 200 billion euros ($230 billion) in payments through Danske’s Estonian branch between 2007 and 2015, many of which Denmark’s largest bank said in a report last month it regards as suspicious.

The central bank said the situation in the banking sector has improved since.

“The lion’s share of the funding for the Estonian banking sector comes from resident client deposits and the share of non-resident deposits has fallen over the years and is now only 7 percent,” the central bank said.

“Companies from outside the European Union, which may be considered the riskiest clients, are now less than 1 percent of all clients,” it said.

Reporting by Tarmo Virki; Editing by Simon Johnson

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