- Deutsche Bank (DB -0.6%), Bank of America (BAC -0.2%), and JPMorgan (JPM) have been contacted by U.S. officials seeking information about transactions they handled for Danske Bank's (OTCPK:DNKEY -2.4%) tiny Estonian branch, now the focus of one of the largest money-laundering investigations ever, Bloomberg reports, citing people familiar with the matter.
- There are no signs that the three banks themselves are targets of the investigation, still in its early stages.
- Deutsche, BofA, and JPMorgan were correspondent banks for Danske's Tallinn, Estonia, branch.
- Part of the broader investigation is looking at whether the big banks gave sufficient scrutiny to the Estonia transactions.
- Correspondent banks maintain accounts with other banks, keeping funds on deposit there and using them to make payments on the clients' behalf in foreign countries and currencies.
- Earlier this year, Danske Bank disclosed that the Estonian branch moved $230B in potentially illicit funds from accounts linked to Russia and other former Soviet countries into the global banking system.
- Spokespersons from JPMorgan, Deutsche Bank, and BofA declined to comment on the matter to Bloomberg.
- Previously: Danske Bank -4.6% after disclosing U.S. criminal probe (Oct. 4)
- Previously: Germany orders Deutsche Bank to do more to prevent money laundering: Reuters (Sept. 24)
Deutsche Bank, BofA, JPMorgan drawn into Danske probe: Bloomberg
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