Financial Crime World

Denmark Lags Behind in Combating Financial Crimes, Experts Warn

Denmark Falls Short of International Standards

Copenhagen, August 7, 2017 - Despite having a solid foundation for tackling money laundering and terrorist financing, Denmark has been found to be lacking in the implementation of measures to mitigate these risks. The country’s financial sector and other businesses are exposed to significant threats due to inadequate risk assessments and weak supervision.

FATF Report Highlights Concerns

According to a recent report by the Financial Action Task Force (FATF), Denmark does not have a national strategy to combat money laundering and terrorist financing, leaving it vulnerable to these crimes. The report also criticizes the country for failing to enact an independent and modern law against money laundering that criminalizes self-laundering.

Key Findings

  • Money laundering and terrorist financing risks are not being properly assessed or updated in almost all sectors of the financial industry.
  • Many businesses and professions covered by FATF standards show a weak implementation of measures to mitigate these risks.
  • Denmark lacks a national strategy to combat money laundering and terrorist financing.

Recommendations

The report recommends that Denmark:

  • Strengthen its risk-based approach to AML/CFT supervision of financial institutions and designated non-financial businesses and professions (DNFBPs).
  • Increase supervisory action to ensure effective implementation of anti-money laundering measures.

Positive Developments

On the positive side, Denmark has made significant progress in investigating and prosecuting terrorist financing cases, particularly in cooperation with neighboring countries. The report urges Denmark to prioritize the investigation and prosecution of money laundering crimes as well.

Government Commitment

The Danish government has demonstrated its commitment to enhancing its anti-money laundering regime through recent legislative amendments. However, experts warn that effective implementation is crucial to ensure the integrity of the financial system.

Urgent Action Needed

The FATF’s findings were adopted at its June 2017 plenary meeting, highlighting the need for Denmark to take swift action to address these concerns and improve its stance against financial crimes.