FATF assessment of Denmark’s anti-money laundering and counter-terrorist financing system

FATF assessment of Denmark’s anti-money laundering and counter-terrorist financing system

PARIS, 08-Aug-2017 — /EuropaWire/ — Denmark has the foundations for a sound regime to tackle money laundering and terrorist financing, but needs to improve the implementation of measures to mitigate the risks, including through better assessing those risks and enhancing national policy coordination.

The FATF conducted an assessment of Denmark’s anti-money laundering and counter-terrorist financing (AML/CFT) system, based on the 2012 FATF Recommendations. This assessment covers the entire Kingdom of Denmark (hereafter Denmark), including Greenland and the Faroe Islands. This assessment reviews both the level of effectiveness of Denmark’s AML/CFT regime as well as its level of technical compliance with the FATF Recommendations.

Denmark does not have a national strategy to combat money laundering and terrorist financing and needs to do more to properly assess and understand the risks it is exposed to. The report also recommends that Denmark enacts an independent and modern money laundering offence that criminalises self-laundering.

In almost all segments of the financial sector and many of the other businesses and professions covered by the FATF Standards, money laundering and terrorist financing risks are not sufficiently assessed or updated, and there is a weak implementation of measures to mitigate the risks. Stronger implementation needs to be complemented by a fully comprehensive set of legal requirements in line with the Standards. Fundamental improvements are also needed to implement an effective risk-based approach to AML/CFT supervision of financial institutions and most DNFBPs, with stronger powers to enforce compliance and increased supervisory action.

On the operational side, Denmark has achieved substantial level of effectiveness in the investigation and prosecution of terrorist financing and international cooperation with foreign counterparts, in particular the Nordic and Baltic countries. The report recommends that Denmark similarly prioritise the investigation and prosecution of money laundering.

Denmark demonstrated its commitment to enhance its regime to detect, prevent and punish money laundering and terrorist financing and protect the integrity of the financial system, including through recent legislative amendments that could not be reviewed as part of the assessment. These developments are welcome and the Danish authorities are encouraged to ensure an effective implementation of these new legal provisions.

This report was adopted by the FATF at its Plenary meeting in June 2017.

Download the report: 

Mutual Evaluation of Denmark – 2017

Executive Summary

Earlier reports on Denmark’s measures to combat money laundering and terrorist financing 

More information:

FATF Recommendations

Methodology for assessing technical compliance with the FATF Recommendations and the Effectiveness of AML/CFT Systems

Consolidate assessment ratings – an overview of ratings that assessed countries obtained for effectiveness and technical compliance.

SOURCE: FATF-GAFI