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EBA launches inquiry into Danish FSA's supervision of Danske Bank


According to Market Intelligence, February 2023


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EBA launches inquiry into Danish FSA's supervision of Danske Bank

The European Banking Authority is looking into the Danish Financial Supervisory Authority's supervision of Danske Bank A/S in light of the money laundering scandal at the lender's Estonia branch, Reuters reported.

EBA Chair Andrea Enria told the European Parliament that the regulator is carrying out "preliminary breach of union law inquiries" on the Danske Bank case in Denmark, according to the Oct. 8 report.

Danske Bank is facing multiple investigations over the Estonia affair, and analysts at Morgan Stanley have estimated that the lender could face up to $9 billion in fines over the matter. The bank recently disclosed that U.S. authorities have begun a criminal investigation in connection with the case and that it has been ordered by the Danish FSA to double its capital backstop amid the probes.

Enria said the EBA is also launching a review into how EU member nations apply anti-money laundering rules, with the regulator due to report by the end of 2018.

He added that the EBA has initiated a preliminary inquiry into how Latvia's Finance and Capital Market Commission supervised ABLV Bank AS, which had been liquidated and had its license withdrawn after it was accused by U.S. authorities of alleged involvement in money laundering earlier in 2018.

The EBA could make recommendations that national regulators are required to follow, the newswire noted.