AML in Denmark

Denmark does not exhibit significant instances of financial crimes, thereby mitigating the prevalence of money laundering risks within the country. Furthermore, trade-based money laundering practices are largely absent in Denmark, and occurrences of public corruption are nearly negligible. Nonetheless, similar to its counterpart Norway, Denmark shares geographical vulnerabilities that could render it susceptible to being exploited as a transit point for smuggling activities.

Primarily, foreign criminal enterprises serve as the catalysts for money laundering endeavors in Denmark. These foreign criminal activities, particularly centered around the illicit trade of substances like cocaine and heroin, contribute to the initiation of money laundering schemes. The Danish Special Crimes Unit has identified various criminal revenues—such as those stemming from theft, tobacco smuggling, robbery, and human trafficking—that can be subjected to money laundering techniques. Within Denmark, channels involving illicit money transfers and foreign exchange services frequently function as conduits for laundering proceeds stemming from drug trafficking.

Denmark stands among the countries with the lowest corruption levels globally, where instances of bribery and other unethical behaviors are not perceived as hindrances to business operations. Impressively, Denmark attains a Transparency International Corruption Index rating of 87/100, coupled with a remarkable score of 99/100 on the World Governance Indicator for Control of Corruption.

Within the Danish legal framework, the Criminal Code explicitly proscribes both active and passive bribery in alignment with international anti-corruption agreements. Countermeasures against corruption and the misuse of authority are predominantly rooted in a robust culture of integrity, rather than being solely reliant on formalized regulations.

2009: Adoption of the New Consolidated Danish AML Act.
2012: Issuance of the 40 recommendations by FATF.
2013: Release of guidelines related to the Danish AML Act and the introduction of the New Consolidated Act addressing money laundering and terrorism financing.
2015: Implementation of the Second Wire Transfer Regulation, enactment of the Fourth Anti-Money Laundering Directive, and execution of a National Risk Assessment concerning money laundering.
2016: Enactment of an Act introducing a beneficial owner register, along with the issuance of Commission Delegated Regulations focusing on the identification of high-risk third countries exhibiting strategic deficiencies.
2017: Establishment of an agreement to enhance measures against international tax evasion, introduction of a new Danish AML Act, issuance of Seven Executive Orders under the Danish AML Act, and attainment of a political consensus on reinforcing anti-money laundering measures in the financial sector.
2018: Formulation of a National Strategy for Anti-Money Laundering and Terrorist Financing spanning 2018 to 2021, enactment of the Fifth Anti-Money Laundering Directive Act that modifies the Danish AML Act to implement enhanced anti-money laundering measures, achievement of a political accord outlining supplementary steps to bolster anti-money laundering and counter-terrorist financing endeavors, issuance of new guidelines concerning the Danish AML Act, and enactment of an Act amending the Danish AML Act to further tighten anti-money laundering regulations.
2019: Achievement of a political consensus regarding augmented measures to counter financial crime, conduction of a National Risk Assessment on money laundering by the State Prosecutor for Serious Economic and International Crime, implementation of an Act that amends the Danish AML Act to incorporate provisions from the Fifth Anti-Money Laundering Directive, and enactment of an Act that modifies the Danish Companies Act and similar legislation to revise regulations pertaining to beneficial owners, prompted by the Fifth Anti-Money Laundering Directive.