Financial Crime World

Denmark Enforces Financial Sanctions and Compliance Regime

Overview

Denmark has a robust sanctions regime in place, reflecting EU Council Decisions and Regulations that have direct effect in the country. The regime includes arms embargoes, travel bans against named individuals, import and export controls, and financial sanctions against designated entities.

Sanctions Lists

  • Denmark relies on the consolidated list maintained by the European Union (EU) for sanctioned individuals and entities.
  • There are no other lists related to sanctions maintained by Danish authorities.

Export Controls

  • Denmark has a licensing system in place for exporting weapons and defense-related material, with applications handled by the Minister of Justice.
  • The Ministry of Foreign Affairs is responsible for coordinating export controls, while the Danish Business Authority issues authorizations for dual-use items.

Consequences of Non-Compliance

  • Non-compliance with sanctions can result in severe consequences, including:
    • Fines
    • Imprisonment (up to four months or four years)
  • Under the Danish Criminal Code, individuals and corporate entities found guilty of breaching sanctions can face a fine and/or a term of imprisonment not exceeding four months or four years, depending on aggravating circumstances.
  • Executive Order no 635 of 09 June 2011 and no 712 of 05 July 2019 impose criminal penalties for non-compliance with export authorization requirements. Penalties include fines and/or imprisonment for up to two years.

Responsible Regulators

The relevant regulators in Denmark responsible for sanctions compliance include:

  • Ministry of Foreign Affairs
  • Danish Business Authority
  • Danish Customs Authorities
  • Ministry of Justice
  • National Police of Denmark
  • Ministry of Foreigners and Integration
  • Danish Immigration Service

Compliance Requirements

Companies operating in Denmark must ensure they are aware of and comply with these regulations to avoid severe consequences. It is essential to:

  • Maintain accurate records
  • Seek legal advice if unsure about any aspect of the sanctions regime

Important Note

The information contained in this article is intended as a guide only and should not be relied upon without consulting relevant authorities or seeking professional legal advice.