United States V. Danske Bank: New Theory of Liability for Violation of US AML Standards
- Michael Dawson, Michael Leotta
- 4.5.2023
Partners Michael Dawson and Michael Leotta penned an article for the upcoming issue of The Review of Banking and Financial Services. The article discusses the expansive extraterritorial reach of the recent plea agreement between the United States and the Copenhagen-based Danske Bank. Dawson and Leotta explore the US Department of Justice’s new and evolving theory of liability that led Danske Bank to plead guilty to one count of conspiracy to commit bank fraud last year.
Excerpt: Late last year, Danske Bank A/S pleaded guilty to one count of conspiracy to commit bank fraud in violation of 18 U.S.C. Section 1349 and agreed to a money judgment of $2,059,979,050.1 The plea agreement is notable not only because it is the largest financial penalty imposed in a matter whose root lies in violation of anti-money laundering (“AML”) standards, but also because it entails a new theory of liability with broad implications for the extra-territorial application of U.S. AML standards. The matter also reflects the evolving enforcement policy of the Department of Justice in corporate criminal matters, particularly a policy preference for guilty pleas over deferred prosecution agreements; expectations for securing credit for cooperation; and requirements for compliance commitments, including evaluating the compliance performance of executives and rendering executives with a “failing score” ineligible for bonuses.
