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.
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.
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.
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