Danish Banks Plow Money into AML as Danske Case Reverberates (1)

Danish banks are investing heavily to make sure they’re not targeted for financial crime amid warnings by the country’s regulator that smaller lenders are likely to be vulnerable now that larger peers have toughen their defenses.

Since last year, banks have increased by almost 40% the number of staff dedicated to anti-money laundering defenses and compliance monitoring at an additional cost of 900 million kroner ($133 million), according to Finans Danmark. Lenders now employ around 4,300 people, up by 1,200 from a year ago, the industry group said in a statement on Sunday.

The added costs are weighing on the ...