Financial Crime World

Denmark Fights Financial Crime with Maturity and Investment

Economic Crime Prevention & Risk Management: The Nordics 2023 Conference

Industry experts gathered at the Economic Crime Prevention & Risk Management: The Nordics 2023 conference in Oslo, Norway, to discuss Denmark’s progress in financial inclusion and crime prevention.

Striking a Balance between Regulation and Implementation

Anita Nedergaard, Country AML Responsible at Nordea Danmark, emphasized the importance of finding a balance between regulation and practical implementation. Since 2015, Denmark has seen significant investments in preventing financial crime, with over 11 billion DKK spent on improving processes and training employees.

  • By the end of 2022, Nordea had 2600 employees working exclusively on preventing financial crime, which corresponds to 9 percent of its workforce.
  • Over 3 billion transactions are monitored every year, with more than 70,000 notifications sent to the Financial Intelligence Unit (FIU) in 2022 alone.

Strengthening Defenses against Money Laundering and Terrorist Financing

Denmark has implemented various measures to strengthen its defenses against money laundering and terrorist financing (ML/TF). These include:

  • Increased “fit and proper” requirements for senior management
  • Higher fines for non-compliance with the AML act
  • Quarterly reporting to the Danish Financial Supervisory Authority (DFSA) on 26 data points

Effective Cooperation between Authorities

Denmark has also seen improvements in data exchange and protection, ensuring effective cooperation between authorities. The country is preparing for forthcoming EU anti-money laundering regulations and legislation, which will further strengthen its defenses against financial crime.

Promoting Financial Inclusion

As part of its efforts to promote financial inclusion, Denmark has worked to prevent financial crime while also ensuring access to financial services for all citizens. The country’s efforts have paid off, with:

  • Over 12,000 customer employees trained in know-your-customer (KYC) procedures
  • More than 29,000 employees trained in combating financial crime

Conclusion

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As the industry continues to adapt to new challenges, experts agree that Denmark’s approach offers valuable lessons for other countries. By prioritizing financial inclusion and crime prevention, the country has set a strong example for others to follow.