Faroe Islands Implement Anti-Terrorism Financing Regulations

The European Commission has given the Kingdom of Denmark permission to conclude agreements with Greenland and the Faroe Islands for transfers of funds between Denmark and each territory to be treated as transfers within Denmark, under Regulation (EC) No 1781/2006.

Meeting EU Criteria

According to Article 17 of the regulation, the Faroe Islands and Greenland meet the criteria for treating transfers as those made within Denmark. The territories comply with EU anti-money laundering regulations and have laws in place to prevent money laundering and financing of terrorism.

Direct Participation in Payment Systems

The Commission has also noted that payment services providers in Greenland and the Faroe Islands participate directly in payment and settlement systems in Denmark, and that both territories have incorporated provisions similar to those in Regulation (EC) No 1781/2006 into their legal orders.

Anti-Money Laundering Legislation

Greenland and the Faroe Islands have also implemented anti-money laundering legislation, including measures to prevent money laundering and financing of terrorism. Both territories have laws in place to impose financial penalties on entities or persons listed by the United Nations or the European Union.

Derogation Conditions

The Commission has decided to grant Denmark the requested derogation, subject to certain conditions. The agreements between Denmark and Greenland must ensure compliance with EU data protection regulations, including Articles 25 and 26 of Directive 95/46/EC.

Committee Opinion

The decision was made in accordance with the opinion of the Committee on the Prevention of Money Laundering and Terrorist Financing.

Note: Regulation (EC) No 1781/2006 is a European Union regulation that sets out rules for anti-money laundering and combating the financing of terrorism. Directive 95/46/EC is a European Union directive that sets out rules for data protection.