COPENHAGEN, Denmark (AP) — The chief executive of Denmark’s largest bank resigned Wednesday, hours before it was to present the conclusions of an internal report into alleged major money laundering via its Estonian branch.
Thomas Borgen said in a statement that “Danske Bank has not lived up to its responsibility in the case of possible money laundering in Estonia. I regret that deeply.”
Borgen said that despite being cleared by the report “I think the right thing for all parties is that I resign.”
In May, Danish regulators said there had been “serious shortcomings” in the anti-money laundering activities of Danske Bank in Estonia, following reports this year of money flows from family members of Russian President Vladimir Putin.
Danske Bank was reprimanded and given eight orders to be fulfilled by June 30.
Denmark’s top prosecution authority eventually opened a criminal investigation for “possible violation in connection with money laundering,” adding that this was to establish whether Danske Bank can be prosecuted before courts of law.
“As CEO, I have the managerial responsibility for what is happening in the bank, and of course I take it,” said Borgen, who joined the Copenhagen-based bank in 1997 and and became its CEO in September 2013.
Danske Bank was expected to hold a news conference later Wednesday on the money laundering allegations.
