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Denmark Tackles Money Laundering and Terrorism Financing with Strict AML Laws

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Denmark has implemented strict anti-money laundering (AML) laws to prevent the financial proceeds of criminal activities from being laundered and used to fund terrorist organizations. The Danish Anti-Money Laundering Act requires specific entities, known as “obliged entities,” to implement measures to detect and report suspicious transactions.

What is Money Laundering and Terrorism Financing?

Money laundering involves receiving or obtaining financial proceeds of a criminal act, hiding or concealing them, or assisting in their transfer. Terrorism financing occurs when an individual or organization provides financial support to those who commit or plan terrorist acts.

Obliged Entities Under the AML Act

The Danish AML Act applies to gambling operators that provide services in Denmark or abroad. This includes:

  • Online betting
  • Land-based betting
  • Online casinos
  • Land-based casinos

Exemptions apply to certain low-risk gambling products, such as:

  • Lotteries
  • Charity events

Gambling Operators’ Obligations

To prevent money laundering and terrorism financing, gambling operators must:

  • Identify and assess the risk of being exploited for these purposes.
  • Implement policies, procedures, and controls to detect suspicious behavior and transactions.
  • Conduct customer due diligence (KYC) to verify customers’ identities and purposes.
  • Investigate complex or unusual transactions and report findings.
  • Keep records of customer information, transactions, and investigations.
  • Notify the Anti-Money Laundering Secretariat immediately if a transaction is suspected to be related to money laundering or terrorism financing.

Retailers Under Land-Based Betting

In cases where retailers sell betting products on behalf of gambling operators, the retailer is not considered an obliged entity under the AML Act. However, the operator must instruct retailers on their obligations and ensure they can perform duties such as:

  • Conducting KYC
  • Reporting suspicious transactions

Penalties for Non-Compliance

Gambling operators that fail to comply with AML regulations may face penalties, including:

  • Fines
  • License revocation

For more information on Denmark’s anti-money laundering laws and guidelines, visit the Danish Gambling Authority’s website.