May.18, 2010

The Spanish financial authorities have imposed a fine of 1.7 million euros on Jyske Bank in Gibraltar alleging money laundering but this is disputed by the bank, who have appealed.

Questioned by PANORAMA,the bank's managing director Lars Aarup Jensen said: "We do not agree to the administrative decisions and therefore we have appealed the decisions to the Spanish Courts.

'POLITICAL NATURE'

"Based on the legal advice that we have received we are of the opinion that the decisions are in breach of EU laws and we consider the situation to be of a political nature. The case involves political issues that are beyond the competence of a single institution like ours to resolve."

Possible conflicts in banking regulations between Gibraltar and Spain have led to a considerable fine for Jyske Bank, say reports in Denmark. The Spanish authorities assert they have been denied access to vital information.

In the decision to fine the bank, the violations were described as ‘very serious’ and Jyske Bank in Gibraltar was cited for failure to properly report, unwillingness to investigate certain transactions, and having inadequate control procedures, says the Jyllands-Posten newspaper.

It is the first time a Danish bank has been fined for violations of another country’s money laundering rules.

Jyske Bank claims that the situation is due to disagreements between the Spanish authorities and authorities in Gibraltar.

‘Our department is supervised by the authorities in Gibraltar and reports to them, but the Spanish authorities believe they are also entitled to certain information,’ explained Peter Stig Hansen, Jyske Bank’s chief legal counsel.

ADAMANT DENIAL

He adamantly denied the bank has participated in or contributed to money laundering. Hansen called the current case ‘a political matter’, stating that from the Danish perspective the bank has complied with all EU rules, and therefore also with those pertaining to Spain.