European Banking Authority to probe member countries over Danske Bank
EU watchdog will investigate Denmark, Latvia and Estonia over alleged EU law breaches
Brussels has ordered a pan-European probe of Denmark, Latvia and Estonia over alleged regulatory failings in the €200m Danske Bank money-laundering scandal.
The European Commission has for the first time used its powers to order the European Banking Authority to investigate alleged breaches of EU law, in a sign of the alarm over suspected Russia-linked hot money flows in the Danske case.
Danske — Denmark’s biggest lender — already faces criminal probes domestically and in the US and Estonia over the affair, which has cost Thomas Borgen the job of chief executive.
The Commission also separately ordered Maltese authorities to take tougher action against money laundering after the European Banking Authority accused Valletta of failing to correctly supervise its financial institutions.
Frans Timmermans, Commission first vice-president, said: “To protect the security of Europeans and ensure a safe, reliable financial system, every authority in every Member State must uphold EU money-laundering rules in full. We remain vigilant and ready to act so that any breach is swiftly remedied and that better supervisory practice ensures it does not happen again.”