On Sep. 28, DEN FSA issued executive order on high-risk countries.
DEN FSA issued order (Ord BEK 1064) on conditions for establishment of subsidiaries, branches or offices of companies and persons from high-risk third countries.
Plus, establishment of branches and representative offices in high-risk third countries.
Overview
Companies and persons may only establish subsidiaries, branches or representative offices in Denmark if the high-risk third country has committed at a high political level to address deficiencies identified in Financial Action Task Force public statement.
Those wishing to establish a branch or representative office in a high-risk third country must determine in the company's or person's risk assessment what risk-mitigating measures the company or person will implement to counter risk of money laundering.
Credit and financial institutions that have correspondent relationships with respondent institutions located in a country included in the EU CMSN's list of high-risk third countries must investigate the risk of money laundering and terrorist financing.
In relation to correspondent relationship and, on the basis of a specific assessment, determine whether it is necessary to introduce additional risk-reducing measures in relation to the relationship with respondent institute or terminate the relationship.
Fine imposed on person who, intentionally or through gross negligence, violates above.
Effectiveness
The executive order will enter into force on Dec. 30, 2024.
Regulators
DEN FSA
Entity Types
Bank; BS; Ins; Inv Co
Reference
Ord BEK 1064, 9/28/2024; Rpl Ord 2365, 12/9/2021; AML Act 807 (DEN); Citation: Ord BEK 1064;
