More banks are caught up in money-laundering scandals

March 12, 2019

 

The money-laundering scandal that struck Danske Bank last year was staggering. The Danish lender’s Estonian branch is suspected of handling up to $230bn of iffy funds from former Soviet states. Aftershocks are rumbling under other European banks. Shares in Austria’s Raiffeisen Bank International tumbled by more than 12% on March 5th after a complaint was filed accusing it (and, to a lesser extent, other Austrian banks) of “gross negligence or acquiescence” in connection with suspicious flows from Danske. Raiffeisen says it is investigating.

Raiffeisen is just the latest bank to be suspected of channelling dirty money from Europe’s eastern fringes. Helsinki-based Nordea and Sweden’s Swedbank are among those embroiled in the Danske affair. Swedbank’s share price has shed 18% since it was linked to Danske last month (see chart). Some banks have been stained by a separate scheme, the “Troika Laundromat”. European banks caught up in such allegations have lost €20bn ($22.6bn) or so in stockmarket value in the past six months.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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