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BANKING

Danish bank to pay millions to end French laundering probe

Denmark’s largest bank has agreed to pay a multi-million sum to end legal pursuits in France linked to alleged money laundering in its Estonian subsidiary that resulted in heavy US penalties

Published: 18 September 2024 16:27 CEST
A branch of Denmark's Danske Bank in Tallinn, Estonia
A branch of Denmark's Danske Bank in Tallinn, Estonia. (Photo by RAIGO PAJULA / AFP)

Danske Bank will pay €6.3million (47million kroner) to end French financial authorities’ investigation.

An independent auditor’s report published in 2018 alleged Danske Bank’s Estonian unit allegedly laundered some €200billion through 15,000 accounts from 2007 to 2015.

The payment was agreed on August 27th with France’s national financial crime prosecutors and validated by a court on Wednesday. The agreement does not involve any admission of guilt.

Danske last December pleaded guilty in the United States and paid a $2billion fine.

The bank last October set aside an amount roughly equal to its US fine in expectation of legal pursuits in several countries.

Probes are underway in Estonia, Denmark, and Britain.

France charged Danske in 2019 with organised money laundering, which it denied, saying it was unaware of its Estonian subsidiary’s activities.

Tracfin, the French finance ministry’s anti-money laundering unit, found suspect movements on two accounts linked to a Franco-Russian businesswoman who has since been handed a two-year suspended sentence.

At Wednesday’s hearing, Danske’s counsel Niels Heering said his institution was “happy to reach this accord which for us is a way to close this chapter”, adding that “cracking down on financial fraud remains a priority” for the bank.

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PROPERTY

How to avoid French property rental scams

Finding a place to live - or even to stay - in France can be difficult, and to make it more complicated scammers often prey on unsuspecting property seekers.

Published: 16 September 2024 10:46 CEST
How to avoid French property rental scams

More and more people head online to begin their search for a new rental property in France – whether they’re seeking a long-term rental to live or somewhere just for a few months.

But this can be risky with scammers active in the market – such as the 40-year-old Paris man accused of swindling 64 victims by illegally sub-letting properties that he did not own.

So how can you avoid falling victim to online criminals?

The golden rule

There’s one golden rule: don’t hand over any of your hard-earned cash before you sign a lease. This may seem obvious, but if you have found an ideal property it could be more difficult to say no if the person you think is the landlord, or their representative demands money – perhaps to ‘secure the property’. That’s a red flag, right there.

As is paying for the privilege of viewing a property. A genuine landlord would not charge you just to look round.

It is, however, completely normal to be asked to send documents such as proof of income/legal residency in France before a viewing. While in some countries you view the property and then undergo financial checks, in France landlords often want to see your dossier before they spend their time showing you around.

READ ALSO A beginner’s guide to renting property in France

Low rental

Rental prices can be high, especially in Paris which regularly tops international comparisons of the world’s most expensive cities. It’s therefore tempting to look for a bargain, but that too-good-to-be-true rental price probably is.

If an property ad has a monthly rental price that is lower than you would reasonably expect for a place in a certain area, beware.

Some legitimate reasons for a lower price might be that the property is shared (colocation), is a sub-let (sous-location) or is the short-term rental known as bail mobilité. However, these types of contract all have their own rules and limitations and – in the case of bail mobilité – are not available to everyone.

First contact

Beware of long emails from the ‘landlord’ of a property you’re interested in, especially if they seek to demand certain conditions on property visits.

It has been reported that some criminals try to scam victims into sending deposit money on the strength of a viewing video. If you can’t physically visit a property, wonder why.

READ ALSO What you should know about paying rental deposits in France

Watch where you’re sending your money

If you’re asked to pay any money by cash transfer, Western Union, or to a bank not based in France, watch out. This could be evidence of a scam.

Note also that deposits are dictated by law. The deposit for an unfurnished rental property can only be equal to one month’s rent, while a furnished property deposit is two months’ rent. 

READ ALSO 9 things landlords in France can never ask of tenants

Remember too: sign the lease before you pay even the deposit. 

Contractual obligations

There are rules about French property rental contracts. They must include the landlord’s contact details (or those of the property manager), and include information on the size of the property, co-ownership regulations, asbestos, lead and energy performance diagnostics, and the effective date and duration of the lease. 

Model contracts are simple to find on the internet. Search for contrat location modele

READ ALSO The vital French vocab for renting property

Google Lens

Online reverse search tools such as Google Lens are your friends. You can check to see if photos purporting to show the property you’re interested in are also being used to ‘advertise’ different properties in other towns or cities. 

Online liability

Platforms on which landlords can post properties for rent may also be used by scammers. The platforms themselves have repeatedly said that they are not responsible for content published on their sites.

But some short-term rental platforms – notably Airbnb and Abritel – have in the past been found liable for content on their site.

READ ALSO Renting property in France: Should I go for furnished or unfurnished?

But protect your data

The government’s Dossier Facile website allows prospective renters to prepare and build their rental file, and gather all their supporting documents in one online storage place – and, crucially, watermarks them to protect you “against fraud from unscrupulous owners”.

And if you are a victim

If you are the victim of a fake online ad, you may be able to file a complaint online on the Thesee platform. Alternatively, get in touch with the police. 

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