Financial Crime World

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Denmark’s Anti-Money Laundering and Counter-Terrorist Financing Measures Criticized for Lack of Coordination and Methodological Deficiencies

A recent report by [Organization] has highlighted several deficiencies in Denmark’s anti-money laundering (AML) and counter-terrorist financing (CFT) measures, including a lack of coordination among government agencies and methodological shortcomings.

Deficiencies Identified

  • The Money Laundering Risk Assessment (MLRA) conducted by Denmark did not include input from the private sector and is considered to have limited relevance and utility by the private sector.
  • Denmark does not maintain comprehensive statistics on matters relevant to the effectiveness and efficiency of its AML/CFT systems, which negatively impacted the MLRA.
  • There is a lack of national AML/CFT strategy and policies in place.

Criticisms of Financial Intelligence Unit (FIU)

  • The FIU’s analysis of financial intelligence received from financial institutions is limited.
  • The FIU prioritizes its analysis and dissemination based on ongoing investigations of predicate offenses rather than identifying and pursuing new ML/TF cases.
  • The FIU is facing diminishing human resources, which has a negative impact on the quality of analysis conducted.

Criminal Laws and Penalties

  • Denmark’s criminal laws do not have fully proportionate or dissuasive penalties for money laundering.
  • The average sentence for ordinary ML cases is 1.5 years imprisonment.

Positive Developments

  • Denmark is taking steps to formalize coordination among government agencies.
  • A new Money Laundering Risk Assessment (MLRA) will be developed in 2017, including a new methodology.

Conclusion and Recommendations

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The assessment team considers that there is a need for significant improvement in Denmark’s AML/CFT measures to effectively combat money laundering and terrorist financing. To address these deficiencies, the report makes several recommendations:

  • Developing a national AML/CFT strategy and policies
  • Improving coordination among government agencies
  • Enhancing the analysis of financial intelligence received from financial institutions
  • Increasing the proportionate and dissuasive penalties for money laundering
  • Strengthening the operational autonomy of the FIU

The full report is available on [Organization]’s website.