Under the agreement signed on Tuesday, the 7th of January, the US will give Estonia 50 million US dollars (48.2 million euros) of the fine imposed on Danske Bank for money laundering, reports Estonian broadcaster ERR.
The fine will be used to strengthen the prevention, detection and investigation of financial crime, including money laundering, cybercrime and terrorist financing, according to the Ministry of Justice and Digital Affairs.
Tõnis Saar, Secretary General of the Estonian Ministry, said the new agreement with the US will strengthen efforts to fight financial crime.
He stressed the role of financial resources in raising awareness, improving specialist skills and fighting money laundering and cybercrime, calling US cooperation “invaluable”.
The agreement states that the funds should be used to improve the prevention of financial crime in Estonia by financing investigative systems, law enforcement training and anti-money laundering measures. It also aims to improve international cooperation on asset confiscation.
Cooperation with the US in the Danske Bank money laundering investigation was a politically sensitive issue under both the Jüri Ratas government and the first Kaja Kallas government. The cooperation sparked a national debate on whether Estonia should receive part of the fines imposed by the US.
Danske Bank admitted to fraudulent activities through its Estonian branch and agreed to pay more than two billion US dollars in fines, as well as 413 million US dollars in a settlement with the US Securities and Exchange Commission (SEC).
The trial in Estonia began in November 2023, with six former employees accused of large-scale money laundering at a branch between 2007 and 2015, concealing the origin and owners of suspicious funds.
According to evidence gathered during the pre-trial investigation, the defendants provided money laundering services amounting to at least 1.6 billion US dollars and six million euros.
Foreign Minister Margus Tsahkna said that the US decision to grant Estonia part of the Danske Bank fine was a sign of strong ties and effective cooperation.
“The US is a close ally,” he said, adding that the decision highlights strong relations not only in politics and defence, but also in law enforcement.