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EBA investigation into possible breach of Union law by money laundering

EBA investigation into possible breach of Union law by money laundering

In recent months Denmark faced a scandal on Danske Bank money laundering in its Estonian branch as the media informed, e.g. here or here or here.

The media stated the reputation of Denmark as being one of the least corrupt countries in the world had suffered significantly and also the position of Danish Financial Supervisory Authority had weakened. The latter source quoted Věra Jourová, the European commissioner for justice: “I want to understand better where the main errors happened, whether it was purely a fault of the due diligence done by the bank itself or whether there was some mistake of the supervisory authority.”

It is important that the European Banking Authority (EBA) had been investigating the case into a possible breach of Union law by the Estonian Financial Services Authority and the Danish Financial Services Authority and closed it on the 17th April 2019. The EBA's Board of Supervisors (the main decision-making body of the EBA) rejected a proposal for a breach of Union law recommendation.