Central Bank confident on money-laundering buffers
The Central Bank has said it is confident in its procedures to combat money laundering in the Republic, after the boss of Danish bank Danske resigned following a €200bn scandal, the largest in European history.
The financial watchdog pointed to a review by the Financial Action Task Force, the international standard setters, which found that “Ireland has a generally sound legislative and institutional framework” when it comes to anti-money laundering and countering terrorism financing.
The bank said:
“We are empowered to take measures that are reasonably necessary to ensure that credit and financial institutions comply with the provisions of legislation. This includes enforcement proceedings when firms are found not to be compliant. It is worth noting that combating money laundering and terrorist financing is done on an inter-agency basis in Ireland.”
Danske chief executive Thomas Borgen resigned after an investigation revealed payments totalling €200bn through its small Estonian branch, many of which the bank said were suspicious.
The Danish bank detailed compliance and control failings amid growing calls for an EU crackdown on financial crime after a series of money-laundering scandals which have attracted the attention of US authorities.
“Even though I was personally cleared from a legal point of view, I hold the ultimate responsibility. There is no doubt that we, as an organisation, have failed in this situation and did not live up to expectations,” said Mr Borgen, who will stay on until a new CEO is appointed.
Danish politicians were critical of Danske for not revealing exactly how much money was allegedly laundered and not saying who was legally responsible for the lapses.
