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Denmark Bans €500 Note in Attempt to Curb Laundering
Following a year-long internal investigation, Denmark is taking a strong stance against money laundering. Just this month, Denmark announced the decision to ban 500-euro notes in an attempt to fight laundering in the country. This decision was made despite a request by the European Central Bank (ECB) not to ban the note.
Following allegations, the chief executive of Danske, Denmark’s largest bank, resigned in September 2018. A year-long investigation revealed that $233 billion in suspicious transactions had moved through the bank’s tiny branch in Estonia. This enormous amount is nearly 10 times larger than Estonia’s gross domestic product.
The scandal has since rocked Denmark. Suspicions had already been growing that Danske had quietly become a hub for Russian money laundering. The report by the firm Brunn & Hjejle said the bank had ignored signals for years, including a warning back in 2007 about “criminal activity in its pure form” involving “billions of rubles monthly”.
The bank was pushed into the spotlight, facing huge fines and investigations around the globe. In addition to a Denmark investigation, the bank faces other legal action by European and U.S. investigators. In the midst of the growing crisis, Denmark also threatened to draft tougher penalties against laundering.
Fast forward to April 2019, Denmark is making a moveto curb money laundering and repair its reputation. Considering that the Danish operations of Scandinavia’s biggest bank, Nordea Bank Abp, is also under investigation for money laundering, now is definitely the time to make some serious changes.
“It is worth noticing that one of the reasons the ECB decided to permanently stop producing the 500-euro banknote was the concerns that this banknote could facilitate illicit activities,” explained business minister Rasmus Jarlov.
Later this month, Parliament will be considering the ban for a second time. The final vote will take place in May. As of now, the measure is backed by opposition parties and members of the coalition government. All involved expect the measure to pass.
“All the parties in the parliament are agreeable to the bill and the ban,” Jarlov said.
What will this mean? If the measure is approved, no one will be able to deposit or exchange the notes after Jan. 10, 2020. It will also be impossible to tender them or otherwise use them in Denmark.
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Author Bio: Payment industry expert Taylor Cole is a passionate merchant account expert who understands the complicated world of accepting credit and debit cards at your business. His understanding of the industry and retail merchant services reviews has helped thousands of business owners save money and time.
