Danske Bank shares down 3% after alleged $8.3bn laundering accusations

Danske Bank shares were down 3% after reports that its Estonian operations were allegedly used to launder as much as $8.3bn, double previous estimates.

According to Danish newspaper Berlingske, as much as DKr53bn ($8.3bn) of suspicious money had flowed in through the Estonian branch of Danske Bank.

The date of the alleged illicit transactions span from 2007 to 2015 but it remained unclear who had carried out the transactions.

Denmark’s business minister said the news was "a disgrace and a scandal", arguing that the government might carry out its own inquiry, even as opposition lawmakers called on Denmark’s fraud squad to investigate.

Admittedly, the lender began conducting its own probe in 2013, extending it in 2017 following reports in the media.

Anders Jorgensen, head of group compliance at Danske, said: "As we have said earlier, it is too soon to draw any conclusions about the extent of potential money laundering in Estonia. That is the reason why we have not ourselves published figures or commented on speculations about potential amounts.

"On several occasions, however, we have said that the extent seems to be somewhat larger than previously estimated. Until the investigations launched have been completed in September, though, it would be wrong to speculate any further. But there is no doubt that even one krone laundered is one too many, and that we take this matter very seriously."

French officials opened an investigation into Danske Bank in September, but the lender was later placed outside the remit of the formal investigation.