The European Banking Authority has closed its formal investigation into a possible breach of European Union law by the Estonian Financial Services Authority (Finantsinspektsioon) and the Danish Financial Services Authority (Finanstilsynet) in connection with money laundering activities linked to Danske Bank and its Estonian branch in particular.

At a vote at a recent meeting the EBA's board of supervisors rejected a proposal for a "breach of Union law recommendation."

According to press reports, the EBA has suppressed the publication of a document that 'points to' four infractions against EU law, perhaps to spare the blushes of the Danish and Estonian regulators who signally failed to keep an eye on the situation during the last ten years. Valdis Dombrovskis, an EU official responsible for financial policy, told the London Financial Times that the EBA was wrong to shrink from dealing with the scandal.