By Geoffrey Smith
Danske Bank on Thursday booked a 14 billion Danish crown ($1.89 billion) provision, edging closer to a long-awaited settlement with authorities over its involvement in one of the world's biggest money laundering scandals. Danske said discussions with authorities, namely the U.S. Department of Justice and the Securities and Exchange Commission (SEC) as well as the Danish Special Crime Unit, were ongoing and there was no certainty regarding the outcome. "The discussions with U.S. and Danish authorities related to the Estonia matter are now at a stage where Danske Bank can reliably estimate the total financial impact of a potential coordinated resolution," CEO Carsten Egeriis said.
Danske Bank will not pay 2021 dividends tied to second quarter results as it is still in discussions with Danish and U.S. authorities over involvement in a money laundering scandal in Estonia, the bank said on Friday. "The board of directors has decided that Danske Bank will not pay out dividends for 2021 in connection with the announcement of the interim report for the second quarter of 2022," the Danish lender said.