Translation from original text in Danish. In case of discrepancies, the Danish version prevails.
As appears from the FSA's statement of 29 January to the Minister for Industry, Business and Financial Affairs on Statement on supervision of Danske Bank as regards the Estonia case, there is a clear division of responsibilities between supervisory authorities. The DFSA supervised the Group's overall governance, while the EFSA supervised AML regulation in Estonia. The supervision was organised in accordance with this division of responsibility from 2007 onwards. The EFSA conducted four AML inspections in the branch in 2007-2014, and also conducted AML supervision between inspections. In the statement of 29 January, the DFSA emphasises that the EFSA’s inspections contributed to Danske Bank closing down the branch's International Banking department in 2015.
The division of responsibilities arises from EU legislation and is also described in the joint statement made by the DFSA and the EFSA on May 28, 2018. The division of responsibilities also appears from the Legal Adviser to the Danish Government’s memorandum, which was included in the statement of 29 January. The memorandum is enclosed with this press release.
The EFSA has been part of the college of supervisors for Danske Bank since this was established, and the EFSA did not in this context express disagreement regarding supervisory model or division of responsibilities with respect to supervision of either governance or AML.
Both national and international inquiries have been launched, including by the EBA, the Danish National Audit Office (Rigsrevisionen) and the IMF. These inquiries will be able to put the area and process into further perspective.
Read the Legal Adviser to the Danish Government's analysis of the division of responsibilities between the FSA and the EFSA (pdf)