In an interesting verdict from the Copenhagen City Court, Bo Stengaard, the former CEO of Københavns Andelskasse, has been handed a four-month suspended prison sentence for violations of Denmark’s Anti-Money Laundering Act during his tenure from 2017 to 2018.
Stengaard admitted his failure to act on suspicious transactions totaling approximately DKK 1.5 billion that flowed through the cooperative bank, despite clear red flags. These transactions potentially linked to money laundering or terrorism financing were overlooked, as the bank’s internal controls were woefully inadequate
The case underscores the systemic failures within Københavns Andelskasse. Founded as a member-owned cooperative, the bank had long struggled financially and operationally. The Danish Financial Supervisory Authority (FSA) had issued multiple warnings as early as 2008. By 2017, it deemed the bank’s business model unsustainable. compare our story about the story of this bank here. Following a criminal referral in 2018, the institution was taken over by the state-run Finansiel Stabilitet with the aim of winding down operations.
The crucial role of CLEARHAUS A/S
Crucially, the fintech company Clearhaus—now a subsidiary of Germany’s Unzer—played a central role. As a key shareholder and client of the bank, it introduced a stream of suspicious clients. According to Stengaard, accounts from Clearhaus were never subjected to proper scrutiny, revealing critical lapses in Know Your Customer (KYC) protocols and transaction monitoring.
Though Stengaard stated he attempted to correct course and described his leadership as stepping into a “sinking ship,” the court deemed him personally responsible. The judgment highlighted “exceptionally serious and extensive violations of the AML Act,” confirming that personal accountability in AML failures is not only symbolic but actionable under Danish law.
Unzer, the parent company of Clearhaus since 2021, declined to comment, citing a change in ownership and management. They stated that Clearhaus now operates under the highest regulatory standards in cooperation with the Danish FSA.
One more individual remains indicted in the case, but their identity is protected under a court-imposed gag order pending further legal proceedings.
What an interesting development…
