The Justice Department announced today that it entered into an agreement to share $50 million in forfeited assets with the Republic of Estonia (Estonia) in recognition of Estonia’s assistance in the successful prosecution of Danske Bank and related forfeiture.
“Coordinating with our foreign law enforcement counterparts is critical in the fight against complex financial crime – which now, more than ever before, is transnational in nature,” said Principal Deputy Assistant Attorney General Brent S. Wible, head of the Justice Department’s Criminal Division. “Today’s agreement to share $50 million in forfeited funds with Estonia recognizes Estonia’s valuable contribution to the successful U.S. prosecution of Danske Bank, which pleaded guilty for lying to U.S. banks about its inadequate anti-money laundering controls and high-risk, offshore customer base to gain access to the U.S. financial system. Estonia’s pledge to use the funds to combat financial crime, enhance asset recovery, and facilitate international cooperation reflects both countries’ commitment to invest in our vital law enforcement relationship to tackle complex cross-border crime.”
In December 2022, Danske Bank pleaded guilty to one count of conspiracy to commit bank fraud in a scheme to defraud U.S. banks regarding Danske Bank Estonia’s customers and anti-money laundering controls to facilitate access to the U.S. financial system. According to admissions and court documents, Danske Bank Estonia had a lucrative business line serving non-resident customers, whom it attracted by ensuring that those customers could transfer large amounts of money through Danske Bank Estonia with little, if any, oversight. Under the terms of the plea agreement, Danske Bank agreed to forfeit $2.059 billion. The Justice Department agreed to credit approximately $850 million in payments Danske Bank made in a coordinated criminal resolution with Danish authorities and a coordinated civil resolution with the U.S. Securities and Exchange Commission and forfeited approximately $1.2 billion. Estonia provided valuable law enforcement assistance in the Danske Bank investigation and ultimate resolution and forfeiture by providing evidence obtained in its investigation of individuals and in response to requests from U.S. authorities.
Under the agreement announced today, Estonia will use the funds to strengthen its capacity to fight financial crime. The shared funds must be used to 1) prevent, detect, investigate, and prosecute financial crime in all its forms, including money laundering, fraud, cybercrime, corruption, and terrorist financing; 2) provide cyber forensics, forensic accounting, counterintelligence, and other specialized education and training across the Baltic States and Nordic region, including as may be appropriate through a training center and collaboration with the United States; 3) enhance compliance with requirements and effective practices for combatting money laundering and the financing of terrorism, strengthen regulatory and administrative controls against money laundering and terrorist financing, and increase public awareness regarding financial crimes, white-collar crime, and financial fraud; and 4) enhance Estonian confiscation procedures and strengthen international cooperation in confiscation matters.
The agreement contains key measures to ensure transparency and accountability. Under the agreement, Estonia will establish an Implementing Commission composed of the heads of the Estonian Ministries of Justice and Digital Affairs, Internal Affairs, and Finance that will oversee the administration of funds and projects. In addition, expenditures will be subject to review by an independent external auditor. In recognition of the important bilaterial relationship of Estonia and the United States and their critical cooperation in law enforcement matters, the United States will serve as an advisor to the Implementing Commission.
Danske Bank was prosecuted by the Bank Integrity Unit of the Criminal Division’s Money Laundering and Asset Recovery Section (MLARS) and the U.S. Attorney’s Office for the Southern District of New York. The FBI investigated the case. The Justice Department’s Office of International Affairs provided critical assistance.
The Criminal Division, through MLARS’ International Unit, administers the Justice Department’s international asset forfeiture sharing program. Pursuant to federal law, and in coordination with the Departments of the Treasury and State, the Attorney General may share proceeds of successful forfeiture of property with foreign countries that participate in the seizure or forfeiture of the property.