Denmark’s Tough Stance Against Money Laundering and Terrorist Financing: An Overview of the Danish Money Laundering Act

Denmark has a strict policy against money laundering and terrorist financing. This article provides an overview of the Danish Money Laundering Act and its key provisions.

Q&A: Danish Money Laundering Act

Question: Does Denmark have legislation against money laundering and terrorist financing?

Answer: Yes, engaging in money laundering and terrorist financing is a criminal offense under the Danish Money Laundering Act.

Coverage of the Legislation

Question: Who does the legislation cover?

Answer: The legislation primarily applies to commercial banks, mortgage credit institutes, savings undertakings, stockbrokers, life assurance companies and trauma pension funds, electronic money institutions and payment services providers, insurance mediators, attorneys, auditors, real estate agents and real estate companies, and others listed in the Act.

Prohibition of Money Laundering and Terrorist Financing

Question: What does the legislation prohibit?

Answer: The Danish Money Laundering Act prohibits money laundering and terrorist financing. Companies and individuals subject to the Act must follow various investigation and notification obligations, such as:

1. Risk assessments
2. Written policies
3. KYC procedures
4. Whistleblower schemes
5. Monitoring of business relationships
6. Documentation.

Definition of Money Laundering

Question: How is money laundering defined in Denmark?

Answer: Money laundering is defined as receiving or obtaining financial gains from a criminal offense, concealing, storing, transporting, or disposing of such finances, or attempting or complicity in these activities.

Intent and Penalties

Question: What level of intent is required to establish a violation?

Answer: A violation of the Danish Money Laundering Act requires either intention or gross negligence.

Question: What are the potential penalties for infringing the legislation?

Answer: Infringing the Act may result in a fine or imprisonment of up to 2 years in serious cases for money laundering. The penalty for terrorist financing is the possibility of up to 16 years’ imprisonment.

Extra-territorial Reach

Question: Does the legislation have extra-territorial reach?

Answer: No, the Danish Money Laundering Act does not extend its jurisdiction beyond Danish borders.

Additional Regulations and Obligations

Question: Are there additional anti-money laundering or counter-terrorist financing regulations or obligations?

Answer: Yes, depending on the industry or activity, additional regulations and obligations under various Acts may apply. Registration and reporting obligations to specific authorities are necessary in some cases.

Question: What are the potential penalties for failing to comply with these obligations?

Answer: The penalty for failing to meet these obligations is either daily or weekly fines or imprisonment for up to 3 years depending on the gravity of the crime.

Enforcing Authorities

Question: Who are the relevant enforcement authorities and their contact details?

Answer: Enforcement of the Act is executed by the Danish Financial Supervisory Authority, the Danish Business Authority, the Danish Gaming Authority, and the Danish Bar and Law Society. Suspected money laundering or terrorist financing activities should be reported to the Danish Money Laundering Secretariat. Their contact details are: https://hvidvask.politi.dk/Home, email: fuu@politi.dk, or telephone: +45 451 547 10 (business hours) or +45 114 (outside business hours).