Years after the stunning revelations fueled by the Panama Papers, Nordea Bank was charged by Danish authorities with involvement in $3.7 billion in questionable transactions. Stateside, Nordea recently settled allegations by New York authorities with a $35 million fine.
In April 2016, 2.6 terabytes of data were leaked to the International Consortium of Investigative Journalists (ICIJ). Representing 11.5 million documents leaked from the now-defunct Panamanian law firm Mossack Fonseca, the Panama Papers had long-reaching impacts—even apparently to the present day.
The legal and financial investigations kicked off by the disclosures in the documents ruined careers, recovered billions in back taxes, embarrassed the wealthy, and initiated financial reform. Earlier this summer, the ICIJ reported that Nordea, a large banking interest in Northern Europe was indicted by Danish regulators on a slew of tax crime violations involving offshore tax allegations and money laundering. Some of the improprieties initially saw the light of day with the Panama Papers leak.
The ICIJ reports that the investigation of Nordea by the Danish Special Crime Unit (NSK) stretched over eight years and uncovered suspicious transactions between the years 2013 to 2015. In a brief public statement in July of this year, Nordea stated it had been “working transparently” with NSK for almost nine years on the investigation.
It is alleged that Nordea, through its Copenhagen branch, aided Russian nationals and other clients in promoting and maintaining approximately 100 offshore shell companies. The Danish case will be heard in Copenhagen.
In the U.S., New York officials alleged Nordea engaged in “billions of dollars of high-risk transactions” from 2008 until 2019. Nordea is claimed to have laundered money and failed to regulate transactions—some of which (again) were uncovered in the Panama Papers leak. The upshot of the allegations is a $35 million fine that Nordea will pay, along with a consent order, to make the problem go away. Nordea’s compliance officer said the bank had "underestimated the complexity of preventing financial crime and the resources needed for that purpose."
Given that Nordea was accused of passing through billions of questionable transactions, $35 million to settle off the charges is a steal.
For global regulators, the Panama Papers and related large-scale document leaks are the gifts that keep on giving. If you are aware of discrepancies in your offshore tax holdings or foreign bank accounts, speak with a trusted tax attorney on potential exposure and your strategic options.
Questions about a tax penalty or potential tax crime allegation? Talk to our legal group for experienced, discreet guidance and representation
With offices in Cleveland and Chicago, the legal group at Robert J. Fedor, Esq., LLC delivers skilled representation on IRS audits, criminal tax investigations, tax litigation, and offshore tax concerns. Call 440-250-9709 or contact us online today.