Estonia to Stop Lobbying U.S. for Share of Potential Danske Fine
(Bloomberg) -- Estonia will no longer lobby the U.S. to get a share of any potential fine imposed on Danske Bank A/S in connection with an ongoing money laundering investigation.
Prime Minister Kaja Kallas, who took office last month, said Estonia now plans to end a previous arrangement whereby U.S. lawyers were hired to help the Baltic country.
“The Finance Ministry is looking into that agreement on how to terminate it,” she said in an interview.
Estonia emerged as ground zero in Danske’s money laundering scandal in 2018, when the bank said that a large part of 200 billion euros ($243 billion) in non-resident flows that went through its Tallinn operations was suspicious.
Read More: Danske May Be Facing $2.4 Billion in Fines, Jyske Analyst Says
The Baltic country’s previous government had argued it was owed part of any fine as a form of compensation. It had hired law firm Freeh, Sporkin & Sullivan to explore such a scenario on its behalf.
Kallas said that ending the current arrangement with the lawyers will trigger a cancellation fee, “but we will look into this in detail, and my clear wish is to get out of this agreement.”
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