Denmark's financial watchdog reopen its investigation into Danske Bank

Denmark's financial watchdog will reopen its investigation into Danske Bank and the alleged laundering of billions of euros from Russia and elsewhere through its Estonian branch following the bank's admission of compliance failings.

The chief executive of Denmark's largest lender resigned on Wednesday after an investigation revealed payments totaling 200 billion euros ($234 billion) through its small Estonian branch, many of which the bank said were suspicious.

"We're reopening the investigation of the bank that we initially closed in May," FSA head Jesper Berg told Danish broadcaster TV2 on Thursday.

The move comes after prime minister Lars Lokke Rasmussen added his voice to critics of Danske Bank, saying he was "shocked" at the scope of the suspicious payments and pushed the bank for more answers.

"The fact that Denmark has been at the center of money laundering of this size is frankly quite horrible," Rasmussen told reporters outside a meeting of European Union leaders in Salzburg late on Wednesday.

The Danish state prosecutor for financial crime said in August it had started a criminal investigation of the bank.