Finance Denmark (Finans Danmark), the local association representing banks and mortgage institutions, asset managers, stockbrokers, investment funds, and data centres, IT and fintech companies in the financial sector, has urged significant reforms to the country’s system for reporting and combating money laundering in the wake of latest annual figures showing that over 70,000 notifications were sent to the Finance Intelligence Unit (Hvidvasksekretariatet) in 2024.
The FIU is part of the National enhed for Særlig Kriminalitet (NSK), a national police response to combat organised crime, financial crime and cybercrime.
Three years ago, economic crime was estimated at some DKK68bn, excluding tax evasion, however the FIU then predicted an increase, which Finance Denmark states is set to hit a three-digit DKK billions level.
Kjeld Gosvig-Jensen, director, Legal at Finance Denmark, commented: “That’s a lot of money. You could build four new super-hospitals every year for that money if you could stop crime. The figures show that unfortunately things are not getting better, only worse. That’s why it’s time for new thinking.”
In a report on its AML/CFT, Finance Denmark has identified key points it wants addressed.
Partnerships and cooperation between the public and private sectors should be strengthened, it stated, and more research should be undertaken to boost the ability to understand the issues and act.
Legislators must address the ability for banks to warn each other about customers suspected of money laundering, as currently “criminals can simply go to another bank” if challenged, noted Gosvig-Jensen.
And legislators should implement a central management unit to oversee the change necessary, including a clear mandate and budget. On this point, Finance Denmark notes that there are currently multiple authorities carrying out tasks with different areas of responsibility, including PET (the Danish Security and Intelligence Service), the FIU, the Danish Tax Agency (Skattestyrelsen), the Danish Business Authority (Erhvervsstyrelsen), the Danish Financial Supervisory Authority (Finanstilsynet) and the Ministry of Justice, but that none has a national overall and coordinating responsibility.
This splitting of oversight by authorities, and application of responsibilities between civil and criminal law is undermining the AML objectives of the financial sector, Gosvig-Jensen suggests.
A full copy of the Finance Denmark report on its proposed AML changes can be downloaded here (in Danish)
AMLA
The response from the Danish financial sector comes as the industry across Europe continues preparations for the start of operations of the EU Authority for Anti-Money Laundering and Countering the Financing of Terrorism (AMLA).
The Authority is to coordinate national authorities to ensure the correct and consistent application of EU rules, as well as transform AML/CFT supervision in the EU including enhancing cooperation between FIUs.
According to the AMLA website the current timeline for ramping up full operations of the new Authority is as follows:
- End of 2025: AMLA staff is around 80; IT support for AMLA’s administration and the transfer of the EuReCA database become operational
- During 2026: Gradual ramping up of IT business service and assessment of AMLA’s future IT needs
- During 2027: 40 obliged entities are selected to be directly supervised
- End of 2027: AMLA staff reaches a cruising capacity of about 430
- January 2028: Start of direct supervision, with AMLA fully operational
