A former director of Copenhagen's Andelskasse bank appeared in Copenhagen City Court on Monday, denying responsibility for alleged anti-money laundering failures. Prosecutors claim he oversaw inadequate controls while billions flowed through the small financial institution.
The case centers on whether the director failed to implement proper safeguards against money laundering. Prosecutors from Denmark's National Unit for Special Crime (NSK) presented their case before one legal judge and three lay judges. They argue the bank processed 4.3 billion kroner from six selected customers without sufficient oversight.
Another director from the same bank previously admitted to major compliance failures during the summer. He described the operation as one big chaos factory before receiving a four-month suspended prison sentence on May 8. Now a second executive faces similar allegations but maintains his innocence.
Defense attorney Henrik Stagetorn told the court his client only handled domestic customers, not the foreign accounts that prompted investigation. The defense argues responsibility lay with the already-convicted colleague.
Prosecutor Frederik Morild emphasized the case's seriousness, noting it involves substantial sums and potential criminal activity. The court has scheduled 26 hearings through next June, with 18 people expected to testify. The accused director will face questioning on November 25.
Police discovered a resignation letter the director allegedly wrote in March 2018 in the bank's IT systems. He wrote he could no longer be accountable for the institution's failure to comply with anti-money laundering legislation.
Among the six customers under scrutiny were British payment intermediaries. Authorities are investigating whether these clients engaged in money laundering or handling stolen goods following a report from Finansiel Stabilitet, which took over the struggling cooperative bank.
Prosecutors previously indicated suspicion that criminals used the bank in investment fraud schemes targeting hundreds of people across Europe. The bank accepted a 796 million kroner fine in January.
This case highlights ongoing challenges in Denmark's financial oversight system. Despite strict anti-money laundering laws dating from August 2017, smaller institutions continue facing compliance issues. The outcome could influence how regulators approach supervision of cooperative banks and smaller financial entities.
International readers should note this reflects broader European concerns about money laundering through smaller financial institutions. While Nordic countries typically rank high in transparency indexes, this case shows even well-regulated markets face enforcement challenges. The extensive court schedule suggests complex evidentiary issues that could set precedents for future financial crime prosecutions.
Danish anti-money laundering regulations require institutions to monitor transactions and report suspicious activity. The prosecution alleges particularly gross or extensive intentional failure to meet these obligations. If convicted, the director faces potential prison time under Denmark's financial crime statutes.