Danish authorities will soon launch a probe into Københavns Andelskasse, or Copenhagen Cooperative Bank, for possible violations of Denmark's anti-money laundering act, the country's Financial Supervisory Authority said Aug. 23.

The regulator said it asked the local state prosecutor to conduct the probe following an inspection in June that led to the suspicion that the retail lender did not take appropriate measures to counter money laundering or terrorist financing risks in some customer relationships.

In a response to the requested probe, Copenhagen Cooperative Bank dismissed two senior managers and is prepared to fully cooperate with authorities, Chairman Morten Schwartz Nielsen said the same day. Nielsen, who took over as chairman in May, has vowed to clean up the lender's conduct issues, with the bank having been under regulatory scrutiny for several years, Nordjyske reported.

The bank did not name the managers who were let go. However, according to Danish newspaper Børsen, one was CFO Jacob Guido Klausen, who Nordjyske said is preparing legal action against the board over his dismissal, Nordjyske said.

This development comes a few weeks after the state prosecutor initiated a probe into Danske Bank A/S over alleged money laundering in its Estonian branch, the report noted.