Denmark – Know Your Customer (KYC) Rules

 

 

Denmark is not a major financial center and does not have a serious problem in the area of financial crimes. Money laundering activity is generally from foreign criminal activity and is primarily related to the sale of illegal narcotics, specifically cocaine, heroin and amphetamines. Furthermore, outlaw motorcycle gangs have been involved in a range of offenses, including narcotics-related offenses, smuggling of goods, and various financial crimes. There are no indications of trade-based money laundering as it relates to drug trafficking in Denmark and public corruption is virtually non-existent.

Denmark is geographically vulnerable to serving as a transit country for smuggling into Sweden and Norway.

KNOW-YOUR-CUSTOMER (KYC) RULES:

 

Enhanced due diligence procedures for PEPs:

 

PEP is an abbreviation for Politically Exposed Person, a term that describes a person who has been entrusted with a prominent public function, or an individual who is closely related to such a person. The terms PEP, Politically Exposed Person and Senior Foreign Political Figure are often used interchangeably

    • Foreign PEP: YES
    • Domestic PEP: YES

Denmark – KYC covered entities

 

The following is a list of Know Your Customer entities covered by Danish Law:

    • Banks, electronic money institutions and currency exchanges
    • Insurance brokers and intermediaries
    • Pension and mutual funds
    • Securities brokers and dealers
    • Portfolio, asset and capital managers
    • Financial leasing and factoring entities
    • Issuers and processors of credit cards, traveler‘s checks, and money orders
    • Accountants and auditors
    • Real estate agents
    • Trust and company service providers
    • Attorneys
    • Real estate agents
    • Casinos

Denmark – Suspicious Transaction Reporting (STR) Requirements:

 

Number of STRs received and time frame: 2,316 in 2010

Number of CTRs received and time frame: Not applicable

The following is a list of STR covered entities covered by Danish Law:

    • Banks, electronic money institutions and currency exchanges
    • Insurance brokers and intermediaries
    • Pension and mutual funds
    • Securities brokers and dealers
    • Portfolio, asset and capital managers
    • Financial leasing and factoring entities
    • Issuers and processors of credit cards, traveler‘s checks, and money orders
    • Accountants and auditors
    • Real estate agents
    • Trust and company service providers
    • Attorneys
    • Real estate agents
    • Casinos

MONEY LAUNDERING CRIMINAL PROSECUTIONS/CONVICTIONS:

 

Prosecutions: 306 in 2009
Convictions: 158 in 2009

ENFORCEMENT AND IMPLEMENTATION ISSUES AND COMMENTS:

The Government of Denmark has a comprehensive anti-money laundering/counter-terrorist financing (AML/CFT) regime and has been cooperative with the United States in drug money laundering investigations. Denmark and the United States have a Customs Mutual Assistance Agreement which facilitates information sharing between the customs administrations of the two countries. Denmark should continue to enhance its laws and regulations as necessary to adhere to international standards, including extending its AML/CFT requirements to cover gaming establishments and Internet gaming providers.