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Danske Bank ex-employees trial for $1.6 billion laundering begins

EditorRachael Rajan
Published 11/13/2023, 12:11 PM
© Reuters.
DANSKE
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The trial of six former Danske Bank employees commenced today at Harju County Court, marking the start of what is expected to be a detailed examination of one of the largest money laundering cases in Europe. The defendants stand accused of operating a professional money laundering scheme within the bank between 2007 and 2015.

The accused individuals—Juri Kidjajev, Erik Lidmets, Jevgeni Agnevštšikov, Marko Teder, Mihhail Murnikov, and Natalja Komarov—are alleged to have laundered approximately $1.6 billion and €6 million. The indictment outlines a complex web of financial crimes spanning across several countries including Russia, Azerbaijan, Georgia, Switzerland, the United States, and Iran.

According to the prosecution, the former bank employees facilitated the laundering by setting up legal entities to conceal the identities of the beneficial owners of funds suspected to be derived from criminal activities. They are also accused of providing advice on how to mask electronic money transfer trails and offering paid services for transfer documentation. Furthermore, they allegedly executed transit transactions designed to obscure both the ownership and origin of the money.

This case follows charges brought by the Prosecutor General's Office in spring 2023, which detailed the extent of the illegal activities and identified eight predicate offenses linked to this sophisticated money laundering operation. The trial is expected to shed light on the internal workings of Danske Bank during the period in question and determine the extent of involvement by those accused.

InvestingPro Insights

While the trial of the former Danske Bank employees unfolds, it's worth noting some key metrics and insights about the bank's financial health. According to InvestingPro, Danske Bank, a prominent player in the banking industry, has seen an acceleration in revenue growth, with a significant 23.8% increase over the last twelve months as of Q3 2023. This aligns with the InvestingPro Tip that the bank's revenue growth has been accelerating.

InvestingPro data also shows that Danske Bank has a market capitalization of 20524.27M USD, a P/E ratio of 7.22, and a PEG ratio of 0.02 as of Q3 2023. These figures suggest that the bank is trading at a relatively low price compared to its earnings growth, which is expected to continue as per another InvestingPro Tip indicating that net income is expected to grow this year.

Danske Bank also pays a significant dividend to shareholders, with a dividend yield of 8.47% as of July 2023. This is a noteworthy aspect for potential investors seeking income-generating stocks.

In light of these metrics and the InvestingPro Tips, despite the ongoing trial and allegations, Danske Bank appears to maintain a solid financial footing. For more insights and tips, InvestingPro offers an extensive list of additional metrics and tips tailored for each company.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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