Danish Bank shares fall sharply on Friday morning. At 04.10, the value dropped by 10.6 percent after the stock market opened at 9:00 this morning.
Overall, shareholders have lost nearly 40 percent this year, the money laundering case in Estonia has taken the headlines.
Financial Times writes Friday how Danish Bank Estonian branch in 2013 transferred money for Russians without knowing where they eventually ended.
The newspaper has an internal document from the bank where the so-called "mirror trading" - also known as mirror trades - are described.
The transactions took place on the way to Russian customers purchased securities in rubles. They were then sold in a foreign currency as the dollar.
The method is legal, but, according to authorities a red flag in relation to money laundering.
Danish Bank transferred up to 63 billion a year through the type of trades.
- The information about the "mirror trading" gives new fuel to the case. Deutsche Bank has previously been a rather large fine to be involved in something like, say equity adviser Martin Munk from Jyske Bank Ritzau Finans.
Deutsche Bank was last year fined four billion crowns in a case of money laundering by authorities in the US and Britain.
Russians were using the mirror trades led 64 billion out of the country.
Danish Bank said Thursday that the US Justice Department investigates money laundering in Estonia.
Employees of the Danish Bank Estonian branch was aware that there was a risk of damaging the bank's reputation by mirror traffickers.
- It is still a risk we run in other parts of our international business, with the natural currency of power is always out of Russia.
Submitted October 05, 2018 at 07:26AM by Lass3BTC https://ift.tt/2ykHR7s
