Greenland’s Anti-Money Laundering Regulations Receive European Approval

The European Commission has given its approval to Denmark’s application for derogation under Regulation (EC) No 1781/2006, allowing Greenland and the Faroe Islands to treat transfers of funds between themselves and Denmark as domestic transactions.

Background

The decision was based on a series of criteria outlined in Article 17 of the regulation, including:

• Adherence to anti-money laundering (AML) regulations
• Participation in payment and settlement systems in Denmark

Both Greenland and the Faroe Islands have implemented AML legislation, which includes measures to prevent money laundering and financing of terrorism.

Key Players

• Payment services providers in Greenland and the Faroe Islands are already directly involved in payment and settlement systems in Denmark, including:
  • Kronos
  • Sumclearing
• The territories have also incorporated provisions similar to those of Regulation (EC) No 1781/2006 into their legal orders.

Significance

The Commission’s decision is a significant step towards enhancing financial transparency in Greenland and the Faroe Islands, which are not part of the European Union but participate in the EU’s currency area. The move is also expected to facilitate cooperation between Denmark and its territories in the fight against money laundering and terrorist financing.

Next Steps

Denmark will be required to ensure that agreements with Greenland and the Faroe Islands comply with the EU’s Data Protection Directive 95/46/EC. The measures outlined in this decision have been approved by the Committee on the Prevention of Money Laundering and Terrorist Financing.

By strengthening financial transparency, the European Commission’s decision aims to prevent money laundering and terrorist financing, ensuring a safer and more secure financial environment for all parties involved.