Anti Money Laundering (AML) By Country: Denmark

Anti Money Laundering (AML) in Denmark

Denmark
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Money laundering in Denmark is not a major problem. The country has established an adequate Anti Money Laundering/Combating the Financing of Terrorism (AML/CFT) system. However, building a fully-effective, FATF-compliant system that can protect Denmark from potential future threats is still a work in progress.

The Kingdom of Denmark consists of three jurisdictions (Denmark, Greenland, and the Faroe Islands), each with a different set of laws relevant to AML/CFT. The new Measures to Prevent Money Laundering and Terrorist Financing (MLA) has not been extended beyond Denmark proper. The Danish government is working with the Home Rule Governments of Greenland and Faroe Islands to update various aspects of their AML/CFT regimes, permit the extension of the Vienna, Palermo, and Terrorist Financing conventions, and ensure full implementation of UN Security Council resolutions.

Finanstilsynet, the Danish Financial Supervisory Authority (FSA), upholds financial regulations in Denmark. Any institution not overseen by the Danish FSA has to register with and send reports to the Public Prosecutor for Serious Economic Crime.

AML Training in Denmark

Denmark's Criminal Code requires all financial institutions to establish appropriate training programs to combat money laundering and terrorist financing activities within the country.

Economy of Denmark

Recently, the Danish economy has undergone strong expansion stimulated by private consumption growth, exports, and investments. Denmark has successfully modernized its market economy over the last several years, which now features high-tech agriculture, up-to-date small-scale and corporate industry, extensive government welfare measures, comfortable living standards, a stable currency, and high dependence on foreign trade. The unemployment rate is low and capacity constraints are limiting growth potential.

Economic growth gained momentum in 2004 and the upturn continued through 2007.

Banking in Denmark

The National Bank of Denmark is the country’s Central Bank.

The head office of the Central Bank is located in Copenhagen. The National Bank performs all the usual functions of a central bank, and it holds almost all of the nation's foreign exchange reserves.

Derived from the National Bank of Denmark Act of 1936, the objective of the Central Bank is to maintain the following:

  • Stable prices.
  • Safe payments.
  • A stable financial system.

Commercial banks in Denmark provide short-term money to businesses and individuals.

Danish banks suffered throughout the Nordic banking crisis of 1991-93. However, recovery stimulated by continuing capital gains in the securities markets allowed the financial industry to rebound completely.

Currency in Denmark

The Danish Krone (DKK) is the official currency of Denmark. The DKK was first established in 1873, and krone literally translates to “crown” in English. Denmark has decided not to join 15 other European Union (EU) members in adopting the Euro. Nonetheless, the Danish krone remains linked to the Euro.

The krone can be subdivided into 100 ore. Denominations for coins are 25 and 50 ore, and 1, 2, 5, 10 and 20 kroners. Denominations for notes are 50, 100, 200, 500 and 1,000 kroners.

According to the Prime Minister of Denmark, the country will vote about the Danish Euro introduction sometime in 2008.

Other Key Statistics of Denmark

Time Zone: UTC+1 (6 hours ahead of Washington, DC during Standard Time).

Daylight Saving Time: +1hr, begins last Sunday in March; ends last Sunday in October. note: applies to continental Denmark only, not to the North Atlantic components.

Location: Northern Europe, bordering the Baltic Sea and the North Sea, on a peninsula north of Germany (Jutland); also includes two major islands (Sjaelland and Fyn).

Population: 5.614 Million (2013 est.).

Labor Force: Approximately 3% work in agriculture, 21% in industry and 76% in services industries. The unemployment rate is 2.8%.

Languages Spoken: Danish, Faroese, Greenlandic (an Inuit dialect), German (small minority) note: English is the predominant second language.

Trade Organizations: Denmark is a member of the European Union (EU) and the United Nations (UN).

 

A Free Overview Of Anti Money Laundering (AML) For Denmark.