Danske CEO steps down after $234bn linked to laundering scandal

Thomas Borgen, chief executive of Danske Bank, has resigned after allegations that as much as $234bn has been laundered through the bank’s Estonian branch.

The Danish bank is currently subject to official investigations in both Denmark and Estonia by the country’s financial supervision authority, while Danish media has also reported that US authorities are looking into the case.

As such, the bank’s management has been accused of failing to seriously prevent laundering leading Borgen to step down and accept that Danske failed to live up to its responsibility.

"Even though the investigation conducted by the external law firm concludes that I have lived up to my legal obligations, I believe that it is best for all parties that I resign," said Borgen

Borgen, who was promoted to lead the bank in 2013, will remain in his role until a replacement is found, while chairman Ole Anderson may also step down.

The bank has been unable to produce a precise figure for how much money it may have laundered but the $234bn estimate of total flows through its Estonian unit is almost nine times the Baltic nation’s gross domestic product.

Of the 15,000 accounts covered by the flows, 6,200 have the highest risk indicators for laundering and have now been reported to authorities.

Estonian authorities are specifically investigating the bank’s handling of Russian and ex-Soviet Union money, with international financier Bill Browder having long accused Danske Bank of being a “conduit” for Russian money laundering.

A Bloomberg analyst survey estimated that Danske may be subject to $800m in fines for its breaches.