Inquiry from EBA concerning anti-money laundering supervision

The European Banking Authority (EBA) has today informed the Danish FSA that this week EBA expects to forward a formal inquiry to the Danish FSA concerning the FSA’s handling of anti-money laundering supervision. The background for the inquiry is the case relating to Danske Bank’s branch in Estonia.

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Søren Møller Christensen
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smc@ftnet.dk

In a comment Jesper Berg, Director General of the Danish FSA, states:

”We do not yet know the exact details concerning EBA’s inquiry, but it is our understanding that EBA will focus on the FSA’ handling of the anti-money laundering supervision at group level and on the exchange of information with the Estonian supervisory authority.”

“The Danish FSA is of course ready to cooperate fully with EBA as well as with other European institutions in this case and to give an account of our work in relation to the anti-money laundering supervision.”

”We will emphasise to EBA that we share the opinion that the problems with Danske Bank’s non-compliance with the anti-money laundering regulation are very serious. We have strived towards handling this case professionally and in coordination with the Estonian supervisory authority which is responsible for the supervision of the anti-money laundering legislation in Estonia. However, we will make an evaluation with an open mind and consider what is to be learned from this case.”

The Danish FSA is aware that later today EBA will publish the letter which EBA has received from the European Commission. However, the letter has already been leaked to international news media. The Danish FSA has not been contacted by the European Commission regarding the case, but the FSA will itself take contact to the European Commission in this respect.

The FSA is of the understanding that the European Commission raises questions in respect of the FSA’s handling of the anti-money laundering supervision at group level. In this connection, the FSA can state that the supervisory responsibility for anti-money laundering measures at group level was implemented with the 4th Anti-Money Laundering Directive of the European Union which came into force in Denmark in June 2017.

It is also the understanding of the FSA that the European Commission raises questions about the coordination with the Estonian supervisory authority. In this respect, the FSA can state that EBA’s general assessment is that the Nordic supervisory colleges for cross-border banks are among the most well-functioning in Europe. Since 2015, there has been a specific anti-money laundering supervisory college for Danske Bank.