Denmark's progress in strengthening measures to tackle money laundering and terrorist financing

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English

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Follow Up Report Denmark 2021

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Follow-Up-Report-Denmark-2021.pdf
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16 February 2021 - Since the 2017 assessment of Denmark’s measures to tackle money laundering and terrorist financing, and its 2018 and 2019 follow-up reports, the country has taken a number of actions to strengthen its framework.

Denmark has been in an enhanced follow-up process following the adoption of its Mutual Evaluation in 2017. In line with the FATF Procedures for mutual evaluations, the country has reported back to the FATF on the action it has taken since its last follow-up report in November 2019. Consequently, to reflect Denmark’s progress, the FATF has now re-rated the country on the following Recommendations:

6 - Targeted financial sanctions – terrorism & terrorist financing, from partially compliant to largely compliant
7 - Targeted financial sanctions - proliferation, from partially compliant to largely compliant
8 - Non-profit organisations,from partially compliant to largely compliant
25 - Transparency & Beneficial ownership of legal arrangements, from partially compliant to largely compliant
26 - Regulation and supervision of financial institutions, from partially compliant to largely compliant

The report also looks at whether Denmark's measures meet the requirements of FATF Recommendation 15 (New technologies), which changed since their 2019 progress report. The FATF agreed to downgrade the rating to partially compliant. Denmark has addressed some of the deficiencies identified and met some of the new criteria of R.15, but moderate deficiencies remain.
Today, Denmark is compliant on 6 of the 40 Recommendations and largely compliant on 32 of them. It remains partially compliant on 2 Recommendations.

Denmark will continue to report back to FATF on its progress.

Technical Compliance

Ratings which reflect the extent to which a country has implemented the technical requirements of the FATF Recommendations.

Denmark Follow-Up Report - 2021

R.1 - Assessing risk & applying risk-based approach
LC
R.2 - National cooperation and coordination
LC
R.3 - Money laundering offence
LC
R.4 - Confiscation and provisional measures
LC
R.5 - Terrorist financing offence
C
R.6 - Targeted financial sanctions related to terrorism & terrorist financing
LC
R.7 - Targeted financial sanctions related to proliferation
LC
R.8 - Non-profit organisations
LC
R.9 - Financial institution secrecy laws
LC
R.10 - Customer due diligence
LC
R.11 - Record keeping
LC
R.12 - Politically exposed persons
C
R.13 - Correspondent banking
PC
R.14 - Money or value transfer services
LC
R.15 - New technologies
PC
R.16 - Wire transfers
LC
R.17 - Reliance on third parties
LC
R.18 - Internal controls and foreign branches and subsidiaries
LC
R.19 - Higher-risk countries
LC
R.20 - Reporting of suspicious transactions
C
R.21 - Tipping-off and confidentiality
C
R.22 - DNFBPs: Customer due diligence
LC
R.23 - DNFBPs: Other measures
LC
R.24 - Transparency and beneficial ownership of legal persons
LC
R.25 - Transparency and beneficial ownership of legal arrangements
LC
R.26 - Regulation and supervision of financial institutions
LC
R.27 - Powers of supervisors
LC
R.28 - Regulation and supervision of DNFBPs
LC
R.29 - Financial intelligence units
LC
R.30 - Responsibilities of law enforcement and investigative authorities
C
R.31 - Powers of law enforcement and investigative authorities
LC
R.32 - Cash couriers
LC
R.33 - Statistics
LC
R.34 - Guidance and feedback
C
R.35- Sanctions
LC
R.36 - International instruments
LC
R.37 - Mutual legal assistance
LC
R.38 - Mutual legal assistance: freezing and confiscation
LC
R.39 - Extradition
LC
R.40 - Other forms of international cooperation
LC

C = compliant   |   LC = largely compliant     |   PC = partially compliant   |   NC = non-compliant