Small Businesses in Denmark Struggle with AML Compliance, New Report Reveals

A recent audit by the Danish Business Authority (Erhversstyrelsen) has uncovered a significant issue with anti-money laundering (AML) compliance among small businesses in Denmark. The report highlights 417 violations of the Money Laundering Act across 74 companies inspected between January and September 2022.

Problem Areas

Audit Firms: Eighty percent of audit firms failed to conduct adequate internal risk assessments, leading to inadequate AML policies, procedures, and controls.
Real Estate Agencies: Six out of eight companies inspected failed to comply with requirements for internal risk assessment, customer identification, and AML policies.
Tax Advisors and Accountants: None of the 20 firms inspected had performed adequate internal risk assessments or implemented sufficient AML controls.
Providers of c/o Addresses and Virtual Office Hotels: All eight companies audited failed to meet requirements for internal risk assessment, customer identification, and AML policies.

Consequences of Non-Compliance

Administrative Fines: Failure to comply with AML regulations can result in administrative fines, which are determined by the individual/company’s financial situation at the time of the offense.
Reputational Risk: Non-compliant companies’ reports will be published online for five years, posing a significant reputational risk.

Solution: Penneo KYC Software

Penneo offers a KYC software solution that simplifies AML compliance by:

Collecting client documents
Screening data against official business registers
Accessing PEP lists and sanctions lists
Monitoring changes in clients’ control structures
Reporting suspicions to Hvidvasksekretariatet

With Penneo’s digital solution, both businesses and their clients can enjoy a smooth and convenient experience while ensuring full AML compliance.