Case number #1:22-cr-00679 Date Filed: December 13, 2022 Court: U.S District Court Southern District of New York Plaintiff: United States of America Defendant: Danske Bank A/S
Case Summary:
In 2007, Danske Bank acquired Sampo Bank, a Finland-based institution, along with its substantial operations in Estonia. Following the acquisition, Danske Bank continued these operations due to their crucial role in Sampo Bank's Estonian business model. Notably, the non-resident portfolio (NRF) emerged as Danske Bank Estonia's most lucrative segment, contributing 50% of total profits over the bond's duration. To accommodate transactions involving NRF clients' USD payments, Danske Bank employed U.S. institutions and bank accounts.
By December 2013, Danske Bank recognized the elevated risk associated with NRF, attributing this to its clientele residing in high-risk regions, frequent use of shell companies to obscure transaction details, and engagement in questionable practices via American banks. However, Danske Bank Estonia lacked sufficient due diligence and oversight for NRF customer accounts and transactions. Permissive policies allowed NRF accounts to be opened remotely, including by representatives from Russia and other nations without proper documentation. Unregulated money service businesses outside Estonia also established accounts, while representatives of NRF customers gained account access.
Internal audits disclosed by February 2014 that certain NRF customers engaged in dubious, potentially illegal transactions, often involving U.S. institutions. Simultaneously, Danske Bank recognized the inadequacy of Danske Bank Estonia's anti-money laundering (AML) program and practices in addressing NRF-associated risks.
Danske Bank's NRF customers conducted substantial USD transactions across various U.S. banks, all federally insured and located in the Southern District of New York. To retain accounts and facilitate roughly $160 billion in NRF-related transactions conducted between 2007 and 2016, Danske Bank Estonia misrepresented the state of its AML compliance program, transaction monitoring, and information related to customer risk profiles.
Case Verdict: Pleaded guilty to count 1. PROBATION: Probation is imposed for the term of the plea agreement, which is three years from the date on which the Information was filed (December 13, 2022), i.e. December 13, 2025. The defendant organization must comply with the standard conditions that have been adopted by this court as well as with any additional conditions on the attached page. Defendant shall comply with all terms of the signed plea agreement, along with any obligations set forth in its signed reporting and compliance agreements. ASSESSMENT: $400.00 due immediately. RESTITUTION: $1,209,062, 646.00. The defendant organization shall make its criminal forfeiture payment to the following payees in the amount listed below. Name of Payee: The United States of America. Special instructions regarding the payment of criminal monetary penalties: Defendant shall forfeit $1,209,062,646 to the United States pursuant to the terms of the plea agreement. Defendant shall make its forfeiture payment by wire transfer pursuant to instructions provided by the Department of Justice and the United States Attorney's Office for the Southern District of New York no later than ten business days after entry of this judgment.
Learn more about United States V. Dance Bank at: https://www.courtlistener.com/docket/66632683/united-states-v-danske-bank-as/
https://casetext.com/case/united-states-v-danske-bank-as
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