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Danske Bank Estonia enters liquidation

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Danske Bank Estonia enters liquidation

Danske Bank A/S's Estonia branch entered into liquidation, in accordance with a plan agreed with the Estonian Financial Supervision Authority.

The Danish lender has essentially wound up its banking activities in Estonia — sans some technical matters — and only a liquidation committee is managing the branch now.

The Estonian regulator had issued an instruction to Danske on Feb. 19 prohibiting it from operating in the country and ordering it to close its Estonian branch within eight months as a result of its complicity in a $200 billion money laundering scandal. The Estonian regulator said the bank should reorganize customer contracts during this period and return all customer deposits.

Danske Bank immediately agreed to comply with the instruction and said it would also shut down its activities in Latvia, Lithuania and Russia.

The transfer of its retail loan portfolio to a local bank, as mandated by the Estonian watchdog, is now unconditional and the transaction will be finalized before the end of November, according to the bank's statement.