A Danish general guidance is issued by the Danish FSA (http://www.finanstilsynet.dk/da/Temaer/Hvidvask/Regler.aspx). Furthermore, the Danish Business Authority has issued guidance for specific sectors e.g. accountancy sector (https://www.retsinformation.dk/Forms/R0710.aspx?id=146481).
As the main principle customer due diligence always applies. However, transactions below EUR6,700 may be exempted from part of the due diligence requirements pursuant to the current regulation and
guidelines. A potential exemption from the customer due diligence requirement must be based upon a risk assessment and must comply with all statutory requirements.
name, address and social security number. Accepted evidence includes: passport, driving license, birth certificate, tax returns and tax code (including social security number). In addition
electronic public keys (NEM-ID) can function as a supporting document if it is presented together with one or more of the primary documents.
name, address and company number. Accepted evidence includes: registered information from the Danish Commerce and Companies Agency and Articles of Association
The beneficial owners must be identified by identification information (primary documents for identification is accepted, ref. A.9). The group structure or ownership of a group has to be identified as well as
Local guidance states four cases: a) customers who do not physically present themselves for identification purposes; b) cross-border correspondent banks; c) PEPs; and d) shell companies
Legislation requires financial institutions to:
a) have sufficient procedures to determine whether the customer is a PEP who is a resident of another country;
b) obtain approvals from senior management on a daily basis for establishing business relationships with such customers;
c) take reasonable measures to gather information about the sources of income and funds that are involved in the business relationship or transaction; and
d) continuously monitor the business relationship.
In cases of money transfers to or from a bank outside the European Union ('EU') where there is no official agreement of financial services with the EU, further proceedings have to be considered as stated in the local guidance. Before establishing new correspondent banking relationships, firms will be required to: a) gather sufficient information about a respondent institution to understand fully the nature of the respondent's business and to determine, from publicly available information, the reputation of the institution and the quality of supervision; b) assess the counterparty's AML and anti-terrorist-financing controls; and c) obtain daily approval from senior management.
In the case of a customer who has not been physically present for identification purposes, legislation requires the taking of 'further measures to ascertain the customer’s identity'. It sets out an illustrative list of
measures that can be taken to ascertain the customer’s identity in these situations, such as:
a) ensuring that the customer's identity is established by additional documentation;
b) checking or verifying the documents supplied, or requiring a confirmatory certification by another financial institution; and
c) requiring that the first payment in connection with the transactions is carried out through an account opened in the customer's name with a bank.
Danish Money Laundering Secretariat hosted by the State Prosecutor for Serious Economic Crime
Any suspicion (that has not been disproved) of a potential violation of the regulation on money laundering and terrorist financing, has to be reported immediately to the relevant authorities
The de-minimis threshold for reporting is set to situations where suspicion relates to offenses punishable by imprisonment of less than a one year. The threshold referred to is not the possible sentencing in the particular case, but the maximum penalty for the accused criminal offense. In practice, the de-minimis threshold is of minor importance, and rarely applies (all suspicions related to offenses punishable by imprisonment of more than one year have to be reported).
Any penalties will be handled by the State Prosecutor for Serious Economic Crime. In certain cases this can be up to six months imprisonment
No. In certain situations however, the authorities can issue a temporary order to freeze transactions from being executed. In addition, the EU regulations applies to transactions involving sanctioned
there are no specific definitions of “sensitive data” in the Danish act on processing of personal data. However, sections 6-8 defines three different categories of information: normal personal information (6), sensitive personal information on private matters (7) and other types of information on private matters (8) (please see link below). http://www.datatilsynet.dk/english/the-act-on-processing-of-personal-data/read-the-act-on-processing-of-personal-data/compiled-version-of-the-act-on-processing-of-personal-data/
Yes, the information contained in such reports are subject to the protection of information in the Danish act on processing of personal data.
additional documentsconfirmatory certification by another financial institutionfirst payment in connection w/ transactions
Denmark’s law allows only for the enforceability of digital signatures. While digital or advanced electronic signatures are legal, the use of simple electronic signatures is not provided for under the law.
Summary of law
Denmark follows the model law that many European Union member states do. However, it is unusual in that it does not have a provision recognizing simple electronic signatures.
The law also provides rules for the certification authorities that issue digital certificates. It is limited to certification authorities established in Denmark and does not specify any special requirements concerning certification authorities and electronic signatures originating in other countries. However, it does make it possible for certificates issued by them to be recognized in the same way as certificates issued by Danish certification authorities.
Business Registry Authority (http://www.erst.dk/), Lawyer: The Danish Bar and Law Society (http://www.advokatsamfundet.dk).
A risk based approach is allowed in accordance with law. However, the actual approach has to be approved as being consistent with the AML regulations
There are no mandatory requirements in the law, but it is stated in local guidance that copies of identification documentation are accepted. Copies of documentation can be certified by financial institutions
according to the law.