Denmark’s Lawyers Get Revised AML Guidelines: Practical Examples to Combat Money Laundering
Denmark’s The Danish Bar and Law Society has revised its guidelines for lawyers to prevent money laundering and terrorist financing. The new guidance aims to provide practical examples of how lawyers can comply with the country’s anti-money laundering (AML) regulations.
Background
The revised guidelines replace the 2017 guide and provide concrete examples, descriptions, and duties of lawyers involved in cases covered by the Money Laundering Act. The new direction also clarifies which cases are exempt from the legislation.
Some critics argue that the current compliance rules are sufficient, while others believe they need to be strengthened. However, Martin Lavesen, chairman of The Danish Bar and Law Society, hopes that the revised guidance will serve as a valuable tool for lawyers to comply with their AML obligations more easily.
Key Changes
The guidelines include sections on:
- Clarification of when the Money Laundering Act applies to lawyers: Concrete examples are provided of case types where the lawyer’s assistance falls within the act.
- Implementation of internal control and screening of employees: Lawyers must implement robust internal controls and screen their employees to prevent money laundering.
- Concrete definitions of who is considered the actual owner: The guidelines provide clear definitions of who is considered the actual owner, making it easier for lawyers to comply with AML regulations.
- Changes regarding ownership of bankruptcy estates and deceased estates: The revised guidelines clarify the rules surrounding ownership of bankruptcy estates and deceased estates.
- Lawyers’ obligation to notify and exceptions to this: Lawyers must notify authorities of certain transactions and are exempt from this obligation in specific cases.
Importance of Compliance
Law firms in Denmark can face serious consequences if they fail to comply with AML regulations, including reputational damage, financial penalties, and even prison terms for individuals. To avoid such risks, law firms are advised to implement robust AML procedures.
Visma Creditro has helped large and small law firms in Denmark comply with the Money Laundering Act using products like Creditro Comply, which automates the process and removes document-heavy tasks from lawyers, allowing them to focus on advising clients.