Financial Crime World

Greenland: An Overview and Analysis

Introduction

Located on the North American continent, Greenland is the largest island in the world. With a population of around 57,000 people and a total area of 2,166,086 km², it’s an autonomous territory with its own unique characteristics.

Geography and Economy

  • Location: Greenland is situated on the North American continent.
  • Population: Around 57,000 people call Greenland home.
  • Area: The total area of Greenland is 2,166,086 km², with approximately 81% covered by ice.
  • Capital and Largest City: Nuuk, with a population of around 18,000 people.
  • Dominant Industries: Fishing, construction, and wholesale and retail trade are the primary sectors driving Greenland’s economy.

As a self-governing jurisdiction within the Kingdom of Denmark, Greenland’s legal system is based on the Danish model. Key aspects include:

Relationship with Denmark

  • Self-Government: The Act on Greenland Self-Government came into force in 2009, granting Greenland greater autonomy.
  • Legal System: Similarities exist between Greenland’s and other Nordic countries’ legal traditions.

Peer Review Report

The OECD has assessed Greenland’s compliance with standards for transparency and exchange of information for tax purposes. The report highlights both strengths and areas for improvement:

Compliance Assessment

  • Processes and Resources: Greenland has established the necessary mechanisms to ensure effective exchange of information.
  • Lack of Substantive Cases: There is limited evidence of the framework’s effectiveness in practice.

Recommendations

To strengthen its compliance with OECD standards, Greenland should:

Effective Implementation

  • Monitor EOI Framework: Regularly review and improve the implementation of its exchange of information (EOI) framework.
  • Supervise AML Act: Ensure effective enforcement of the Anti-Money Laundering (AML) Act to guarantee accurate beneficial ownership information.

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