Did local regulators in Estonia and Denmark fail to flag the Danske Bank’s money laundering scheme? Seems EU regulators can’t decide whether it was clearly money laundering or not.
EU bank regulators looked into it and said yes. But their superiors, the European Banking Authority (EBA) board of supervisors, felt the failings did not amount to a breach of EU law. The European Commission, which requested the review, disagrees and plans to pursue the EU investigation into Danske Bank’s scandal.
Money launderers and financial criminals should — in theory — have good reason to fear the European Union’s army of white-collar cops. The bloc boasts 28 national financial regulators, a euro-zone banking regulator in Frankfurt (the Single Supervisory Mechanism), an EU-wide banking supervisor in London (the European Banking Authority), and a financial markets watchdog in Paris (the European Securities and Markets Authority). It’s a blizzard of three- and four-letter acronyms.
Whistleblower Howard Wilkinson exposed the Danske bank scandal. He reported suspicious activity at bank’s Estonia branch, where he worked until 2014. Since then, investigators have identified up to $20 billion in fraudulent financial activity. National Whistleblower chair Stephen M. Kohn is Wilkinson’s whistleblower lawyer.