Internal Auditor's Role in Relation to Money Laundering

Muhammad Shahwayz Qasir Mirza & Deniz Zeki Erman

Student thesis: Master thesis

Abstract

This thesis is based on the latest major money laundering scandal, where Danske Bank has been abused in connection with money laundering of up to DKK 1500 billion in their Estonian branch. This thesis will examine, how it was possible for Danske Bank in the period from 2007 until 2015 to abuse its branch in Estonia, and thereby surpass the Danish regulator financial. In light of the Danske Bank scandal, this thesis will investigate the theory of three lines of defence to examine the responsibility in relation to internal controls in each line of defence. The case of Danske Bank is not unique, the Nordea Bank has also a similar case, in which the bank was connected to money laundering in the period from 2004 until 2014. There are many similarities between the two cases where the criminals used similar methods to misuse both banks for money laundering. Hence, it can be discussed how it can be possible to scam for such large amount of money and over such a long period of time and not being discovered. Therefor will be examine those to case and make a comparison of these to case and find similarity. Furthermore, this thesis will examine the survey we made for department of Compliance and internal audit. In Denmark, the Danish Financial Supervisory Authority oversees the Danish banking institutions and makes sure that they comply with the applicable legislation when carrying out inspections at regular intervals, these inspections show that there is still a huge problem with money laundering that must be combated. Money laundering and financial crime is a global problem, thus there are authorities such as The Danish Financial Supervisory Authority to prevent financial crime. However, it is interesting to examine, how established and well-respected banks have ended up in the above-mentioned scandals

EducationsMSc in Auditing, (Graduate Programme) Final Thesis
LanguageEnglish
Publication date2019
Number of pages126