Greenland Gets Green Light for Anti-Money Laundering Agreement with Denmark

The European Commission has given its approval for Denmark to conclude agreements with Greenland and the Faroe Islands regarding anti-money laundering laws. The agreement aims to treat transfers of funds between Denmark and each territory as if they were taking place within Denmark.

Meet the Criteria

According to the Commission, both Greenland and the Faroe Islands have implemented legislation that meets the criteria set out in Regulation (EC) No 1781/2006 on information on the payer accompanying transfers of funds. This includes:

• Provisions for payment services providers to participate directly in payment and settlement systems in Denmark
• Anti-money laundering regimes

Preventing Money Laundering and Financing of Terrorism

The Commission noted that Greenland and the Faroe Islands have issued legislation aimed at preventing money laundering and financing of terrorism, including:

• Financial penalties for entities or persons listed by the United Nations or the European Union
• Requirements for payment services providers to apply the same rules as those established under Regulation (EC) No 1781/2006

Compliance with Directive

The Commission’s decision was made after considering the application from Denmark, which had been provisionally treating transfers of funds between Denmark and Greenland/Faroe Islands as if they were within Denmark since December 2006. The agreements to be concluded between Denmark and each territory will need to ensure compliance with Directive 95/46/EC on the protection of individuals with regard to the processing of personal data.

A Major Step Forward for Greenland

The Commission’s decision is seen as a major step forward for Greenland in its efforts to combat money laundering and terrorist financing, and demonstrates its commitment to implementing robust anti-money laundering laws.