TORONTO, Sept 5 (Reuters) - Royal Bank of Canada's ( RY )

former Chief Financial Officer Nadine Ahn has denied all

allegations about her relationship with a subordinate detailed

in an RBC counterclaim after she sued the bank for wrongful

dismissal.

In a defense filing with the Ontario Superior Court of

Justice on Thursday, Ahn said she did not breach any of her

duties owed to RBC and did not violate its code of conduct.

"There is no policy against workplace friendships, and

that's all this was," said her counsel, Mark Fletcher. "Their

communications have been selectively quoted by the bank to try

to embarrass, intimidate and maliciously manufacture a case

against her."

She has sued RBC for nearly C$50 million ($37 million) and

has said she had been in the running for CEO before she was

terminated over the alleged relationship.

RBC filed a countersuit against Ahn in August, detailing

findings of its internal investigation into what it said was an

intimate relationship with a subordinate. The bank said the

relationship started in 2013 or earlier.

RBC declined to comment on Ahn's defense filing. It has

previously said its investigation showed there was an

undisclosed personal relationship and that Ahn "misused her

authority" to benefit the employee.

The subordinate has also sued the bank for about C$20

million for wrongful termination.

($1 = 1.3503 Canadian dollars)