The authorities said that the charges were based on the bank’s inadequate monitoring of transactions in financial instruments
Danske Bank's headquarters in Kongens Nytorv, Copenhagen. (Credit: RL0919/Wikipedia.)
Danish authorities have made preliminarily charges on Danske Bank for two potential violations of the market abuse regulation.
The charges have been made by the Danish State Prosecutor for Serious Economic and International Crime (SØIK).
SØIK charges were based on the bank’s inadequate monitoring of transactions in financial instruments and market manipulation owing to certain self-matching trades.
Danske Bank chief compliance officer Philippe Vollot said: “We will of course cooperate with SØIK and share relevant knowledge and materials in relation to the case, which we take very seriously.
“The bank did not have adequate market monitoring in place, and we have therefore since 2019 made significant investments to strengthen our trade surveillance, our systems and controls and have also implemented strengthened pre-trade controls.
“We have not seen any indication of intentional wrongdoing or any harm to customers or market participants.”
The preliminary charges follow the criminal complaint against Danske Bank, filed by the Danish Financial Supervisory Authority to SØIK, on 10 June 2020.
FSA said that by facilitating wash trades, Danske Bank had resorted to misinforming the market. Wash trades enables a single person sells and buys securities, which could result in misleading prices for securities.
The bank is also being investigated by authorities in several countries after more than €200bn ($239bn) in suspicious transactions took place through its Estonian branch from 2007 to till 2015, Reuters reported.
In July, the Estonian Competition Authority approved LHV Pank’s acquisition of the Estonian unit of Danske Bank.
The transaction included acquisition of the bank’s Estonian corporate and public sector credit portfolio.