Thursday 10 October 2019 11:58 am

Danske Bank begins hiring freeze to meet costs associated with money laundering scandal

Danske Bank has initiated a hiring freeze on non-critical positions in a bid to meet rising compliance costs related to its involvement in a money laundering scandal.

“The hiring freeze comes after we’ve seen higher compliance costs and costs related to our anti-money laundering efforts,” a spokesperson for the bank said.

Read more: Former head of Danske Bank in Estonia found dead

Danske Bank has been involved in a major money laundering scandal. It said last year it had channelled €200bn (£180bn) of payments through its Estonian office, many of which the bank said were suspicious.

The former head of Estonia’s financial regulator recently hit out at Danish authorities for not having spotted the extent of the problem at Danske Bank.

“The Danish FSA [Financial Supervisory Authority] took a view that it is not a very serious problem, and the same applied to Danske’s main office in Denmark,” Raul Malmstein told the BBC’s Today Programme.

Read more: Former Estonian regulator: Danish authorities did not take Danske Bank concerns seriously

Malmstien’s comments were made shortly after Aivar Rehe, the former boss of Danske Bank in Estonia, was found dead near his home in Estonian capital Tallinn.

Main image credit: Getty