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Denmark: Section 279 Offences - Breach of Trust and Predicate Offences
A recent case has highlighted the importance of understanding the definition of predicate offences under Section 279 of Denmark’s Criminal Code. The case involved a individual accused of breaching trust by engaging in criminal activities, resulting in unlawful profits.
Predicate Offences Defined
Under Danish law, predicate offences are not specifically defined. However, any breach of the Criminal Code or other specific act that results in an individual unlawfully receiving or obtaining profits from criminal activity is considered a predicate offence.
De Minimis Rules
In Denmark, there is no de minimis amount below which money laundering or terrorism financing prosecution is not possible. Similarly, there is no amount below which anti-money laundering or counter-terrorist financing due diligence does not arise where there is a business relationship.
- Occasional transactions that reach €15,000 may trigger customer due diligence.
- For currency exchange transactions, the threshold is lowered to €500.
Penalties and Plea Agreements
The penalties for money laundering, terrorism financing, and fraud offences in Denmark vary from fines to imprisonment. The current political climate has led to proposals to increase fines.
- Plea agreements are not possible under Danish law.
- Defendants may only rely on general defences such as self-defence.
Defences
In Denmark, there are no specific defences available for parties accused of money laundering, terrorism financing, or fraud. Therefore, all general defences, including self-defence, are available.
Record Keeping and Disclosure
Under Danish law, undertakings and relevant individuals must keep records of transactions and other relevant information for at least five years after the incident. These records must be compliant with both anti-money laundering (AML) legislation and data protection legislation.
- Undertakings and relevant individuals are also obliged to report suspicious transactions to the Financial Intelligence Unit.
Compliance
To comply with AML regulations, undertakings must use a risk-based approach when implementing preventive measures. They must have written procedures and guidelines that cover their business model as a whole, and all employees must be educated in these procedures.
- Public authorities are responsible for supervising internal compliance through physical inspections or desk reviews.
Customer Due Diligence
All undertakings must conduct customer due diligence to identify and verify customers or business partners and their beneficial owners. The level of due diligence required may vary depending on the risk level of the customer or business partner.
Private Enforcement
Private actions can be brought in Denmark for damages arising from money laundering, terrorism financing, or fraud. These actions can take place through court proceedings or out-of-court settlements. Damages are calculated by the court, and successful claimants may also receive other remedies such as compensation or restitution.
The case highlights the importance of understanding the definition of predicate offences under Section 279 of Denmark’s Criminal Code. It is crucial for individuals and businesses to be aware of their obligations under AML regulations to prevent breaches of trust and avoid criminal penalties.