Denmark Cracks Down on Financial Crime with Strict Legislation
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In a bid to curb money laundering and terrorist financing, Denmark has implemented a stringent policy that aims to safeguard its financial system. The Danish Money Laundering Act is at the forefront of this effort, providing a comprehensive framework for combating these serious crimes.
The Danish Money Laundering Act: A Comprehensive Framework
Under the Act, engaging in money laundering or terrorist financing is considered a criminal offense. The legislation primarily applies to various financial institutions, including:
- Commercial banks
- Mortgage credit institutes
- Insurance companies
- Real estate agents
- Attorneys
Obligations and Measures
Companies and individuals subject to the Act must adhere to strict investigation and notification obligations, including:
- Risk assessments
- Written policies
- KYC (Know Your Customer) procedures
- Whistleblower schemes
- Monitoring of business relationships
- Documentation
These measures aim to prevent financial institutions from being used for illegal activities.
Defining Money Laundering
The Danish Money Laundering Act defines money laundering as:
- Receiving or obtaining financial gains from a criminal offense
- Concealing, storing, transporting, or disposing of such finances
- Attempting or complicity in these activities
Intent and penalties are crucial aspects of the legislation. Violations require either intention or gross negligence.
Penalties for Non-Compliance
Infringing the Act may result in:
- Fines for money laundering: up to 2 years’ imprisonment
- Penalties for terrorist financing: up to 16 years’ imprisonment
Enforcement and Reporting
Enforcement of the Act is carried out by various authorities, including:
- The Danish Financial Supervisory Authority
- The Danish Business Authority
- The Danish Gaming Authority
In case of suspected money laundering or terrorist financing activities, individuals can report these incidents to:
- The Danish Money Laundering Secretariat: https://hvidvask.politi.dk/Home
- Email: fuu@politi.dk
- Telephone: +45 451 547 10 (business hours) or +45 114 (outside business hours)
Additional Regulations and Obligations
The Danish Money Laundering Act does not extend its jurisdiction beyond Danish borders. However, additional anti-money laundering and counter-terrorist financing regulations and obligations apply depending on the industry or activity.
Failing to comply with these obligations can result in daily or weekly fines or imprisonment for up to 3 years, depending on the gravity of the crime.