Danske Charge Sheet Shows How Bad It Is Not to Know Your Client
- Prosecutors in Denmark say bank failed to do proper checks
- U.S. actions against Danske depend on how much it concealed
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This week, Danske Bank A/S’s laundering scandal entered a new stage after the first criminal charges were filed. The main takeaway is that police zeroed in on the bank’s failure to screen its customers, potentially leaving it vulnerable to prosecution in more jurisdictions.
Danske failed when it came to compliance and failed to ensure its non-resident clients weren’t “politically exposed,” according to the charge sheet. It also didn’t know who its non-resident clients were, and didn’t adequately monitor what those clients were doing.