Financial Crime World

Danish Government Unveils New Money Laundering Strategy Amidst Criticism and Scandals

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In a bid to move beyond past scandals and criticism, Denmark’s justice, business, and taxation departments have launched a new money laundering strategy for 2022-2025. The initiative aims to strengthen the joint efforts of authorities to prevent financial crime and make it more challenging for criminals to use Danish society for illegal activities.

Goals and Objectives

The government has established 21 objectives to achieve this goal, including:

  • Strengthening control and cooperation at all levels, both nationally and internationally
  • Prioritizing collaboration between authorities and the private sector
  • Developing new technological solutions to combat financial crime

Addressing Past Criticisms

Denmark has faced criticism in the past for its lack of measures to deal with money laundering, including a scathing report from the Financial Action Task Force (FATF) in 2017. The country’s reputation was further tarnished by scandals involving Danske Bank and other institutions.

To address these concerns, the government is committing to:

  • Improve law enforcement agencies’ ability to crack down on financial crime
  • Focus on tracking and identifying the proceeds of crime and seizing them

Technology and Data Sharing

The strategy recognizes the importance of data sharing and digitization in combating financial crime. “Criminals’ use of digital and technological solutions and the generally increasing amount of data in society underline the need to think in new technological solutions,” said a government spokesperson.

Finans Danmark, Denmark’s banking lobby group, welcomed the initiative but expressed concerns about the lack of clarity on how the private sector will be included in the operationalization of the objectives. The group emphasized the importance of increased data sharing between banks and authorities to effectively combat economic crime.

Collaboration and International Cooperation

The strategy also highlights the need for better collaboration between government departments themselves, as well as among public authorities. Objective 16, for example, calls for better expertise in Denmark’s lower courts.

Denmark is working internationally to combat financial crime, including through its membership in FATF and its participation in the EU’s latest AML package. The country has also outlined its priorities in the European Council, focusing on international cooperation and the use of digital tools by authorities.

Conclusion

The new strategy marks a significant shift for Denmark as it seeks to regain its reputation as a leader in anti-money laundering efforts. As the government continues to implement these initiatives, it remains to be seen whether they will be effective in preventing financial crime and restoring trust in the country’s financial system.