Reported by Sara Sjolin

Nordea Bank could face an estimated maximum fine of almost $1 billion over alleged failures to stop money laundering if it loses its case with Denmark, according to some legal experts, an amount that would far exceed the lender’s own expectations. 

The case has no precedent but a Danish court might hit the Helsinki, Finland-based bank with a penalty of as much as 6.5 billion Danish kroner ($943 million), said Hans Fogtdal, a lawyer and former deputy public prosecutor at the country’s National Special Crime Unit, or NSK, which is pursuing the case against Nordea. 

Denmark last week charged Nordea with violating the country’s anti-money laundering laws between 2012 and 2015, when it processed more than $3 billion worth of suspicious transactions largely linked to Russian clients. The indictment marks the first time a money-laundering case against a bank goes to court in Denmark, with all previous ones getting settled.

While it’s almost certain that Nordea will be fined, the amount and exact timing is unclear. The bank has set aside just €95 million ($104 million) to cover the penalty, assuming it will be tried under legislation in place when the alleged offenses happened. By contrast, the NSK is expected to bring the case under legislation providing for much larger penalties but enacted at a later date.

“We expect to be fined but we do not agree with the assessment of the authorities,” Nordea spokesman Tuomas Forsell said in emailed comments, referring to the NSK’s indictment. “This is a case going back in some instances more than 10 years, and which is, among other things, now being assessed based on subsequent regulations.”

Read full report: https://www.bloomberg.com/news/articles/2024-07-11/nordea-risks-money-laundering-fine-near-1-billion-experts-say