Denmark Introduces AML Guidelines for Small Businesses
The Danish government has introduced new guidelines for small businesses in Denmark, aimed at preventing money laundering and terrorism financing. The guidelines, which came into effect last month, require small businesses operating in the country’s gambling industry to implement strict anti-money laundering (AML) measures.
What is Money Laundering and Terrorism Financing?
Money laundering refers to the act of concealing or disguising the source of illegally obtained funds, while terrorism financing involves providing financial support to individuals or groups that engage in terrorist activities.
Obliged Entities
The new guidelines apply to all gambling operators in Denmark, including those operating online and offline. These entities are required to identify and assess the risk of money laundering and terrorism financing, and implement policies and procedures to prevent it.
Gambling Operators’ Obligations
According to the guidelines, gambling operators must:
- Identify and Assess Risk: Identify and assess the risk of money laundering and terrorism financing
- Implement Policies and Procedures: Implement policies and procedures to prevent money laundering and terrorism financing
- Conduct Customer Due Diligence (KYC): Conduct customer due diligence on all customers
- Report Suspicious Transactions: Report suspicious transactions to the National Unit for Special Crime (NSK)
- Maintain Accurate Records: Keep accurate records of all transactions and investigations
Consequences of Non-Compliance
Failing to comply with the new guidelines can result in severe penalties, including fines and even criminal charges. The Danish government has emphasized the importance of preventing money laundering and terrorism financing, and has warned that any non-compliant businesses will be subject to strict enforcement.
Guidance for Small Businesses
The Danish Gambling Authority has published guidance on preventive measures against money laundering of criminal proceeds and financing of terrorism, which is available online. Small businesses operating in Denmark’s gambling industry are advised to familiarize themselves with the guidelines and implement AML measures as soon as possible.
Land-Based Betting Operators
Operators of land-based betting products, such as kiosks or supermarkets, are not considered obliged entities under the new guidelines. However, they must still comply with AML requirements, including conducting customer due diligence and reporting suspicious transactions to the gambling operator.
Conclusion
The introduction of AML guidelines for small businesses in Denmark’s gambling industry is a significant step towards preventing money laundering and terrorism financing. The guidelines require all gambling operators to implement strict measures to prevent these illegal activities, and failure to comply can result in severe penalties. Small businesses operating in the country’s gambling industry are advised to familiarize themselves with the guidelines and implement AML measures as soon as possible.