Estonia will no longer lobby the U.S. to get a share of any potential fine imposed on Danske Bank A/S in connection with an ongoing money laundering investigation, writes Aaron Eglitis of Reuters on February 16, 2021.

After taking office last month, Prime Minister Kaja Kallas immediately said that her government plans to end a previous arrangement whereby U.S. lawyers were hired to help the Baltic country.

Estonia emerged as ground zero in Danske’s money laundering scandal in 2018, when the bank said that a large part of 200 billion euros ($243 billion) in non-resident flows that went through its Tallinn operations was suspicious.

The Baltic country’s previous government had argued it was owed part of any fine as a form of compensation. It had hired U.S. law firm Freeh, Sporkin & Sullivan LLP to explore such a scenario on its behalf.

On February 18, the new Estonian government agreed to terminate the €3 million legal advisor contract agreement with law firm Freeh Sporkin & Sullivan LLP.

The Estonian prosecutor's office will take the lead in money laundering investigations, said Prime Minister Kallas, whose Reform party was also in power when the huge money laundering took place years ago.

VES/ERR News