Frontpage News 2016 The Danish Bankers...

The Danish Bankers Association comments on the new money laundering law

25 August 2016

Trust in the financial system is crucial for Danish banks. Therefore, a lot of resources are used to prevent the financial system from being abused in the form of money laundering and financing terror. The sector is, of course, ready to continue to undertake its share of this responsibility.

That is the main point in the consultation response that the Danish Bankers Association submitted for drafting a new money laundering law, which is predominantly a Danish implementation of the EU’s fourth money laundering directive.

The legislative proposal is, with its 285 pages, a piece of very complex legislation. The law’s complexity and importance is also reflected in the Danish Bankers Association’s consultation response, which manages to get through all the important details in its 47 pages.

It is important that the new rules are operational. The extent of the consultation response must be seen in light of the fact that it is absolutely crucial for the financial sector that the legislation clearly states which obligations the new law entails. Unfortunately, the draft bill leaves a lot to be desired in this area.

The Danish Bankers Association supports the transition to a more risk-based system. However, this also implies very clear guidance from authorities so that risk evaluation can be conducted in a satisfying manner. At the same time, it is important that the supervision of banks leaves space so that risk evaluation of customers can realistically take place, as intended with the law.

While the main points in the law are sensible, the Danish Bankers Association is concerned that the new money laundering rules will lead to unnecessary burdens for the business community and the financial sector in relation to the effect that can be achieved.

It is important that authorities are continually secured the necessary resources to review the many notifications that banks carry out in the area of money laundering – otherwise, the law will not live up to its purpose. The CEO of the Danish Bankers Association, Ulrik Nødgaard wrote a feature article in the Danish newspaper Politiken in August about Danish banks’ efforts with money laundering. An English summary can be read here.
 
 
Further information:
Head of Media Relations at the Danish Bankers Association, Stine Luise Hansen
Tel.: +45 3016 1009
E-mail: slh@finansraadet.dk
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