Between 2007 and 2015, Danske Bank, the largest financial institution in Denmark, actively participated in the largest money laundering scheme in Europe. More than EUR 200 billion of suspicious payments passed through its Estonian branch with the knowledge of the bank’s top management.
The full picture of the scandal emerged only in February 2018 following various press reports, while the seriousness of the situation had already been known among the bank’s top management for a long time. A whistle-blower report had conveyed serious money laundering concerns to the board in December 2013. Additionally, in February 2014, the conclusions of an internal audit were communicated to and discussed by the bank’s top management.
The former CEO of Danske Bank had also overseen the Estonian branch during the money laundering operation. Despite red flags having been raised as early as 2007, and a number of investigations performed by local regulatory authorities over the years, Danske Bank only decided to shut down the non-resident portfolio of its Estonian branch in December 2015. It would later appear that bank continuously misled local regulators. The bank is currently under criminal investigation in Denmark, Estonia and the United States and substantial fines can be expected. As of today, not a single senior executive has been held accountable.
Following an investigation into the communications issued by Danske Bank to the market since 2007, Deminor believes that investors were misled at least from February 2014 onwards. This means investors have a viable cause of action against the bank and its officers for the losses suffered as a result of the corrective disclosure made in February 2018. The stock price has declined by more than 40% since February 2018.
Deminor will (i) file a recovery action and (ii) seek the appointment of an independent investigator during the next shareholders’ meeting, which will take place in March 2019.
Deminor invites investors who purchased Danske Bank shares between 5 February 2014 to 1 February 2018 (both dates included) and held some of these shares on 2 February 2018 to send us their trading data to receive an estimate of their recoverable losses.