COPENHAGEN, Denmark - The Danish Financial Supervisory Authority has rejected Danske Bank's preferred CEO to replace Thomas Borgen who resigned last month after a money laundering scandal at the bank's Estonian branch was revealed.

Denmark's biggest bank was wanting to replace Borgen with Jacob Aarup-Andersen (pictured), its head of wealth management.

The regulator however had different ideas, arguing Aaruo-Andersen, 46, didn't have enough experience.

"The Board of Directors unanimously backed Jacob Aarup-Andersen as new CEO, knowing full well that longer experience in certain areas would have been desirable," the bank's Chairman Ole Andersen said in a statement released on Wednesday.

"The Board has noted the FSA's reply. The Board is in dialogue with other potential candidates and will now continue the recruitment process in order to find the best possible person for the position," the chairman said.

"I am proud and happy that Danske Bank's Board of Directors recommended me for the position as CEO, as it is a strong sign of recognition," Aarup-Andersen said Wednesday. "I have of course noted the FSA's reply and their reasoning."

Aarup-Andersen has been with Danske Bank since 2016, having made the move from Danica Pension. He has headed up the wealth division of the bank since May this year.

Jacob Aarup-Andersen will continue in his current position as head of the Wealth Management unit and member of Danske Bank's Executive Board, the statement said. 

Danske said in their statement that Interim CEO Jesper Nielsen, who headed up the bank's domestic banking division, will remain in that role.

Danske Bank which is headquartered in Copenhagen, was founded in 1871 and has more than five million customers 

A U.S. criminal investigation has commenced in relation to alleged money laundering at the Estonian branch of Danske. The probe involves transactions totalling 200 billion euros ($231 billion), which U.S. investigators say are suspicious.