Denmark Cracks Down on Money Laundering and Terror Financing with New Legislation
In an effort to combat the misuse of funds and disrupt financial networks that support terrorism, Denmark has introduced new laws aimed at preventing money laundering and terror financing.
What is Money Laundering?
The Anti-Money Laundering Act defines money laundering as the unlawful acceptance or acquisition of profits or funds obtained through criminal activity, as well as attempting to conceal or dispose of such funds. This includes activities such as:
- Unlawful acceptance or acquisition of profits or funds
- Attempting to conceal or dispose of funds
High-Risk Sectors
Under the new legislation, specific sectors have been identified as being high-risk and therefore require stricter supervision. These include:
- Auditors
- Realtors
- Art dealers
- Others who commercially supply services related to financial transactions
Oversight by the Danish Business Authority
The Danish Business Authority has been tasked with overseeing these non-financial undertakings to ensure compliance with the law. This includes monitoring transactions valued at over DKK 50,000 in the art dealing sector, which was brought under the Act’s scope as of January 10th, 2020.
Requirements for Individuals and Businesses
Individuals and businesses operating in these sectors are now required to:
- Know and comply with all requirements of the Money Laundering Act
- Report suspicious transactions
- Maintain accurate records
Importance of Combating Money Laundering and Terror Financing
In a statement, officials emphasized the importance of combating money laundering and terror financing, stating: “It is crucial that we take proactive measures to prevent these illicit activities from taking place in Denmark.”
By implementing these new laws, Denmark aims to prevent the misuse of funds and disrupt financial networks that support terrorism.