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Danske Bank corrupted practises

Investigations following the Russian Laundromat scandal and the participation of Danske Bank on it have shown further corrupted and unethical practices of the Bank to protect the wealth of impacted customers

As per reported information, the Bank was proposing to customers to buy physical gold in order to preserve their wealth and circumvent the controls in place to prevent money laundering in the financial sector.

The scheme was very simple: the bank reportedly proposed gold bars to customer as an asset transformation scheme which will allow them to go “out of the scope” of the of the regulation and facilitate asset circulation.

The source noted that: “For gold bars weighing 250 grams or more, clients at Danske’s non-resident unit could obtain the precious metal without a sealed pack or paper certificates. Anti-money laundering approval was needed before customers could collect the gold, but such approvals weren’t necessary if the gold was kept in long-term storage, according to the documents.”

The use of this scheme is not illegal, nonetheless, given the target population and the specific conditions in which the product was launched (including secrecy), generates several doubts about the ethical value of the banks behaviour.

Source

https://www.bloomberg.com/news/articles/2019-11-10/danske-pitched-gold-to-rich-russians-eager-to-avoid-limelight

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Jaime Prieto

Mr. Jaime Prieto is a lawyer experienced in Financial Crime, Anti-Money Laundering and Counter Terrorism Financing having extensive professional experience in both public and private sectors. Mr. Prieto has been a Head of Compliance in the European Union, the Americas and the Caribbean for banks, trust companies, asset managers, Big Four audit and advisory firms, RegTechs, government agencies and other types of financial professionals. In addition to his experience, he has been legal and educational chair in several compliance and sectorial organisations and performed as a teacher and speaker for a number of organisations and in several local and international forums. Furthermore, Mr. Prieto is an experienced Money Laundering Reporting Officer anda Data Protection officer with additional experience in risk management.
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