Danske Bank CEO resigns in light of money laundering scandal

COPENHAGEN, Sept. 19 — Thomas F. Borgen on Wednesday announced his resignation as the CEO of Denmark’s Danske Bank following money laundering scandal in the bank’s Estonian branch.
The decision is announced in connection with Danske Bank’s presentation Wednesday of the conclusions of the investigations into the matters in Estonia, it said in a statement.
“It is clear that Danske Bank has failed to live up to its responsibility in the case of possible money laundering in Estonia. I deeply regret this,” Borgen said in the statement.
“Even though the investigation conducted by the external law firm concludes that I have lived up to my legal obligations, I believe that it is best for all parties that I resign.”
Borgen will however continue in his position until a new CEO has been appointed.
The bank said its Board of Directors has decided to donate the gross income from non-resident customers in Estonian Branch in the period from 2007 to 2015 to an independent foundation which will be set up to support initiatives aimed at combating international financial crime, including money laundering, also in Denmark and Estonia.
The donation, which is estimated at 1.5 billion Danish kroner, will be expensed in the third quarter of 2018.
Danske Bank on Wednesday also lowered its earnings outlook for 2018, expecting a net profit to be in the range of 16-17 billion kroner as against a previous forecast at the lower end of the 18-20 billion kroner range.
It added the outlook remains subject to uncertainty and macroeconomic developments.
Headquartered in Copenhagen, Danske Bank is the largest bank in Denmark and a major retail bank in the northern European region with over 5 million retail customers. (1 U.S.dollar = 6.38 Danish kroner) – XINHUA