Justice Department officials have outlined the Danske Bank guilty plea and agreement to forfeit $2 billion to resolve the U.S. investigation into alleged fraud on domestic banks.
The Justice Department indicated the guilty plea and $2 billion penalty demonstrate the Department of Justice (DOJ) will guard the integrity of the U.S. financial system from tainted foreign money.
“Whether you are a U.S. or foreign bank, if you use the U.S. financial system, you must comply with our laws,” Deputy Attorney General Lisa O. Monaco said. “We expect companies to invest in robust compliance programs – including at newly acquired or far-flung subsidiaries – and to step up and own up to misconduct when it occurs. Failure to do so may well be a one-way ticket to a multi-billion-dollar guilty plea.”
The Justice Department alleged Danske Bank defrauded U.S. banks regarding Danske Bank Estonia’s customers and anti-money laundering controls to facilitate access to the U.S. financial system for Danske Bank Estonia’s high-risk customers residing outside of Estonia.
Justice Department Criminal Division Assistant Attorney General Kenneth A. Polite, Jr. said Danske Bank accepted responsibility for defrauding U.S. financial institutions and funneling billions of dollars in suspicious and criminal transactions through the United States.
“Danske Bank lied to U.S. banks about its deficient anti-money laundering systems, inadequate transaction monitoring capabilities, and its high-risk, offshore customer base in order to gain unlawful access to the U.S. financial system,” Polite said. “This coordinated resolution with the Securities and Exchange Commission (SEC) and Danish authorities sends a clear message that the Department of Justice stands ready to work with our partners around the world to investigate corporate wrongdoing and hold bad actors accountable for their criminal conduct.”