Back Matter

Annex I. Details of all bodies met on the on-site mission - Ministries, other government authorities or bodies, private sector representatives and others.

I. Ministries

Ministry of Economic and Business Affairs

Ministry of Justice

Ministry of Foreign Affairs

Ministry of Taxation

Ministry of Social Affairs

II. Operational, Law Enforcement and Intelligence Agencies

The Office of the Public Prosecutor for Serious Economic Crime

Money Laundering Secretariat (FIU)

The Danish National Police

  • National Security Service

  • Copenhagen Police Department

  • Danish Security Intelligence Service

  • Serious and Organised Crime Agency

Central Customs and Tax Administration

III. Supervisory Bodies

Financial Supervisory Authority

The Commerce and Companies Agency

IV. Other Bodies

The National Agency for Enterprise and Construction Danmarks National Bank National Audit Office of Denmark

V. Financial Institutions

Danske Bank

Nordea

Nykredit

Lokalbanken

Danika Pension

AON, Insurance Brokers

F & P, Forsikring & Pension

Forsikringsmaeglernes

Western Union Money Transfer

Forex A/S

Foreign Exchange Bureau

Nordic Asset Management

VI. Professional Bodies

Financial

The Danish Bankers Association

Danish Securities Dealers Association

The Danish Insurance Association.

The Association of Insurance Brokers

Designated Non-Financial Businesses and Professions

The Institute of State-Authorised Public Accountants

The Association of Licensed Accountants

The Danish Bar and Law Society

The Danish Association of Chartered Estate Agents

Casino Copenhagen

The Danish Jewellers Association

VII. Other

ISOBRO (umbrella organization for NPOs) The Danish Council on Social Volunteering

Annex II. Copies of key laws, regulations and other measures

Act on Measures to Prevent Money Laundering and Financing of Terrorism1)

Act no. 117 of 27 February 2006

Act no. 117 of 27 February 2006

We, Margrethe II, by the grace of God Queen of Denmark hereby make known: Folketinget has adopted and We with Our consent hereby enact the following Act:

Part 1

Scope etc.

1.-(1) This Act shall apply to the following undertakings and persons:

19) Banks.

20) Mortgage-credit institutions.

21) Investment companies.

22) Investment management companies.

23) Life assurance companies and lateral pension funds (nationwide occupational pension funds).

24) Savings undertakings.

25) Electronic money institutions.

26) Insurance brokers, when they act in respect of life assurance or other investment-related insurance activities.

27) Foreign undertakings’ branches in Denmark, carrying out activities under nos. 1-8.

28) Investment associations and special-purpose associations, collective investment schemes, restricted associations, innovation associations and hedge associations.

29) Undertakings and persons that commercially carry out activities involving currency exchange or transfer of money and other assets.

30) Other undertakings and persons that commercially carry out one or more of the activities mentioned in annex 1.

31) Lawyers when they participate by providing assistance in the planning or execution of transactions for their clients concerning

  • i) purchase and sale of real property or undertakings,

  • ii) managing their clients’ money, securities, or other assets,

  • iii) opening or managing bank accounts, savings accounts, or securities accounts,

  • iv) raising the necessary capital for establishment, operation, or management of undertakings,

  • v) establishing, operating, or managing undertakings, or

  • vi) providing other business advice.

32) Lawyers when they, on behalf of their client and at said client’s expense, carry out a financial transaction or a transaction concerning real property.

33) State-authorised public accountants and registered public accountants. 34) Authorised estate agents.

35) Undertakings and persons that otherwise commercially supply the same services as the groups of persons mentioned in nos. 13-16, including tax advisors and external accountants.

36) Providers of services for undertakings, cf. section 3, no. 5.

37) Danmarks Nationalbank (Denmark’s central bank), insofar as it carries out activities corresponding to those of the institutions specified in no. 1.

(2) The Danish FSA may lay down regulations stipulating that this Act is not to apply to the undertakings or persons mentioned in subsection (1), nos. 1-12 in the situations where the Commission decides this pursuant to Article 40 of the Third Money Laundering Directive.

Ban against cash transactions

2. Retailers and auctioneers may not receive cash payments of DKK 100,000 or more irrespective of whether payment is effected in one instance or as several payments that seem to be mutually connected.

Part 2

Definitions

3. For the purposes of this Act:

  • 1) “Companies” shall mean: Legal persons.

  • 2) “Undertakings” shall mean: Companies and other similar legal arrangements.

  • 3) “Regulated market” shall mean: A market as defined by Article 4(14) of Directive 2004/39/EC on markets in financial instruments. If said market is in the European Union or in a country with which the Community has entered into an agreement for the financial area, the market shall be included in the list mentioned in Article 47 of Directive 2004/39/EC on markets in financial instruments. If the market is in a country outside the European Union with which the Community has not entered into an agreement for the financial area, the market shall be a member of the World Federation of Exchanges (WFE).

    4) “Beneficial owners” shall mean: The natural persons who ultimately own or control the customer or the natural person on whose behalf a transaction or activity is being conducted, including:

    • a) Persons who ultimately own or control a company through direct or indirect ownership or control more than 25 per cent of the ownership interests or the voting rights in the company, except companies the ownership interests of which are traded on a regulated market.

    • b) Person who otherwise exercise control over the management of a company.

    • c) Persons who, according to the articles of association of a fund or in another manner, are to receive 25 per cent or more of the distribution funds from a fund or another similar legal arrangement or other property, if the persons are known.

    • d) The group of persons, in whose main interest a fund or another similar legal arrangement has been set up or operates.

    • e) Persons who exercise control over 25 per cent or more of the distribution funds from a fund or another similar legal arrangement or other property.

  • 5) “Providers of services for undertakings” shall mean: Any person, legal or natural, that is not covered by section 1(1), nos. 13-15, when said person carries out the following activities on a commercial basis:

    • a) Forming companies.

    • b) Acting as or arranging for another person to act as a member of the management of an undertaking, or as partner of a partnership, or a similar position in relation to other companies.

    • c) Provides a domicile address or another address, which is similarly suitable as contact address and related services, for an undertaking.

    • d) Acting as or arranging for another person to act as a trustee or administrator of a fund or another similar legal arrangement.

    • e) Acting as or arranging for another person to act as a shareholder for a third party, unless this is an undertaking the ownership interests etc. of which are traded on a regulated market.

  • 6) “Politically exposed persons” shall mean: Persons who are or have been entrusted with a prominent public function, persons connected to such persons through same-sex partnership or marriage or the children or parents of such persons and persons known to be close employees of said persons.

4.-(1) For the purposes of this Act “money laundering” shall mean,

  • 1) unlawfully to accept or acquire for oneself or others a share in profits, which are obtained by a punishable violation of the law,

  • 2) unlawfully to conceal, keep, transport, assist in disposal or in a similar manner subsequently serve to ensure, for the benefit of another person, the profits of a punishable violation of the law, or

  • 3) attempting or participating in such actions.

(2) The provision in subsection (1) shall also cover actions carried out by the person who committed the punishable violation of the law from which the profits originate.

5. For the purposes of this Act, “financing of terrorism” shall mean financing of terrorism as defined in section 114a of the Criminal Code.

Part 3

Investigation and reporting obligations

6.-(1) The undertakings and persons covered by this Act shall pay special attention to customers’ activities which, by their nature, could be regarded as being particularly likely to be associated with money laundering or financing of terrorism. This applies in particular to complex or unusually large transactions and all unusual patterns of transactions in relation to said customer.

(2) The purpose of the transactions mentioned in subsection (1) shall, as far as possible, be investigated. The results of such investigation shall be recorded and kept, cf. section 23.

7.-(1) If there is a suspicion that a customer’s transaction or enquiry is or has been associated with money laundering or financing of terrorism, the undertakings and persons covered by this Act shall investigate the transaction or enquiry in more detail. If the suspicion relates to offences punishable by imprisonment of more than one year and this suspicion cannot be disproved, the Public Prosecutor for Serious Economic Crime shall be informed immediately.

(2) In the event of suspicion as mentioned in subsection (1), members of the Danish Bar and Law Society may notify the secretariat of the Danish Bar and Law Society, which shall, following an assessment of whether the suspicion is subject to reporting obligations under subsection (1), immediately forward the notification to the Public Prosecutor for Serious Economic Crime.

(3) If the suspicion is related to money laundering, and the transaction has not already been carried out, the transaction shall be suspended until notification has been effected pursuant to subsection (1). If notification is effected pursuant to subsection (2), the transaction shall be suspended until the Danish Bar and Law Society has forwarded the notification to the Public Prosecutor for Serious Economic Crime or has stated that, following specific assessment, the notification will not be forwarded. If effectuation of the transaction cannot be avoided, or if this is deemed to be potentially harmful for the investigation, notification shall instead be given immediately after the effectuation, cf. however subsection (4).

(4) If the suspicion is related to financing of terrorism, transactions from the account or person in question may only be carried out with the consent of the Public Prosecutor for Serious Economic Crime. The Public Prosecutor for Serious Economic Crime shall decide, as soon as possible and no later than at the end of the banking day following receipt of notification, whether seizure is to be effected.

(5) The Police may, under the regulations stipulated in the Administration of Justice Act, demand any information necessary for investigation of the case from the undertakings and persons covered by this Act.

8.-(1) Lawyers are exempted from the obligation in section 7 to report information they receive from or obtain about one of their clients, in the course of determining the legal position for their client or performing their task of defending or representing said client in, or concerning judicial proceedings, including advice on instituting or avoiding proceedings. This shall apply irrespective of whether the information is received before, during or after such judicial proceedings or in connection with the relevant client’s legal position being ascertained.

(2) The persons and undertakings mentioned in section 1(1), nos. 13-17 shall, when assisting a lawyer before, during, and after judicial proceedings or in ascertaining a client’s legal position, be exempt from the duty to submit information to the same extent as the lawyer they assist, cf. subsection (1).

(3) Subsections (1) and (2) shall also apply to cases brought before the Danish National Tax Tribunal and to cases brought before a court of arbitration. When representing clients before the Danish National Tax Tribunal, auditors shall also be exempt from the duty to submit information pursuant to this Act.

(4) Subsections (1) and (2) shall not apply if the assistance is provided with a view to money laundering or financing of terrorism, or if the undertaking or person knows that the client is seeking assistance with a view to money laundering or financing of terrorism.

9. If the Danish FSA or the Danish Commerce and Companies Agency learns of circumstances that are presumed to be associated with money laundering or financing of terrorism covered by the reporting obligation in section 7, said authority shall notify the Public Prosecutor for serious economic crime in this respect.

10. The Danish FSA may, when acting on the recommendations of the Financial Action Task Force, lay down more specific regulations on the duty applying to the undertakings and persons specified in section 1, requiring them to systematically submit information to the Public Prosecutor for serious economic crime concerning financial transactions with non-cooperative countries in connection with combating money laundering or financing of terrorism. In this connection, the Danish FSA may stipulate that notification is to be carried out systematically in all cases, even though no suspicion has arisen.

Part 4

Customer due diligence, etc.

11. The undertakings and persons covered by this Act shall always require that customers identify themselves, if they suspect that a transaction is associated with financing of terrorism or money laundering covered by the reporting obligation under section 7.

Regular customer relationships

12.-(1) The undertakings and persons covered by this Act shall have knowledge of their customers in accordance with subsections (2)-(8), and they shall require that their customers provide proof of identity when establishing a business relationship with said customers, including the opening of an account or a custody account.

(2) If the customer is a natural person, proof of identity shall include name, address, national registration number (CPR number) or similar documentation if the person in question does not have a CPR number.

(3) If the customer is an undertaking, the proof of identity shall include name, address, CVR number (business registration number) or similar documentation if the undertaking does not have a CVR number. Reasonable steps shall be taken to ascertain the undertaking’s ownership and control structure and the undertaking’s beneficial owners shall be identified, cf. however section 21(1), no. 2.

(4) Information shall be obtained about each customer’s objective regarding the business relationship and the intended extent hereof.

(5) The customer relationship shall be monitored on a regular basis. Transactions undertaken throughout the course of said relationship shall be monitored to ensure that the transactions being conducted are consistent with the undertaking’s or person’s knowledge of the customer and the customer’s business and risk profile, including, where necessary, the source of the funds. Documents, data or other information about the customer shall be kept up to date.

(6) In the event of doubts about the veracity or adequacy of previously obtained customer identification data, new proof of identity shall be required as mentioned in subsections (2) and (3).

(7) The undertakings and persons covered by this Act may decide to carry out the identification procedure etc. in subsections (1)-(5) on the basis of a risk assessment, depending on the risk related to the individual customer or business relation, the product or the transaction. The undertaking or person shall, however, be able to prove to the authority carrying out supervision of the relevant undertaking’s or person’s compliance with this Act that the extent of their investigation is adequate in relation to the risk of money laundering and financing of terrorism.

(8) For customer relationships established before entry into force of this Act and where the information mentioned in subsections (1)-(5) does not exist, proof of identity and collection of information under subsections (1)-(5) shall be carried out at a suitable time and on the basis of a risk assessment.

13.-(1) The identification procedure in section 12 shall be completed in connection with the establishment of the customer relationship and no later than before carrying out the transaction. Provided that it is necessary in order not to interrupt the normal conduct of business, the identification procedure may, on the basis of a risk assessment, be completed in immediate continuation of the establishment of the customer relationship. In the situations mentioned in the 2nd clause, the identification procedure shall, however, be completed as soon as practicable after the initial contact with the customer.

(2) If the proof of identity of the customer cannot be carried out in accordance with section 12(1)-(4), a regular customer relationship or a business relationship may not be established, and transactions may not be carried out for said customer. At the same time, the undertaking shall check whether notification under section 7 is to be carried out.

(3) Notwithstanding subsection (1), life-assurance companies and pension funds may carry out proof of identity of the customer after establishment of the customer relationship. Proof of identity shall, however, take place at or before the time of payout or at the time the beneficiary intends to exercise rights vested under the policy.

(4) Subsection (2), 1st clause shall not apply to lawyers when ascertaining a client’s legal situation or defending or representing said client during or in connection with a judicial proceedings, including giving advice about instituting or avoiding proceedings. The persons and undertakings mentioned in section 1(1), nos. 13-17, shall, when assisting a lawyer in the situations mentioned in the 1st clause, be exempt from the requirement in subsection (2), 1st clause to the same extent as the lawyer they assist.

Occasional customers

14.-(1) For customers with single transactions (occasional customers) undertakings and persons covered by this Act shall meet the requirements of section 12(1)-(4) and section 13 for each transaction of amounts corresponding to DKK 100,000 or more. The requirements concerning proof of identity shall apply irrespective of whether the transaction is completed in one or more related operations if these appear to be connected.

(2) If the value of a transaction is not known at the time of commencement of said transaction, proof of identity shall be demanded as soon as the undertaking suspects that the transaction concerned is of the type covered by subsection (1).

Transactions for a third party

15. If an undertaking or person covered by this Act has knowledge or presumption that a person other than the one they are in contact with is the beneficial customer, said undertaking or person shall also demand to be informed of the identity etc. of the beneficial customer in accordance with section 12.

Money transmission services

16.-(1) Transactions of payments carried out without personal contact between sender and intermediary or by an intermediary with which the sender does not hold an account shall at all stages of the transaction be accompanied by information about the sender, cf. section 12(2) and (3), 1st clause. The intermediary shall ensure that the information about the sender is adequate and meaningful.

(2) The requirement for sender identification stipulated in subsection (1) shall not, however, apply to clearing and settlement systems carrying out payments between undertakings covered by section 1(1), nos. 1-12 or between corresponding undertakings within the European Union or a country with which the Community has entered into an agreement for the financial area, nor shall said requirement apply to systems for settlement of securities.

Information from a third party

17.-(1) The undertakings and persons covered by this Act may omit to obtain the information about a customer’s identity etc. pursuant to section 12(1)-(4) when this information is provided by an insurance broker, cf. section 2, no. 1 of the Insurance Mediation Act; a financial undertaking, cf. section 5, no. 1 of the Financial Business Act; or by a foreign undertaking that has been granted a license to carry out the activities mentioned in sections 7-11 of the Financial Business Act in a country within the European Union or in a country with which the Community has entered into an agreement for the financial area. Notwithstanding the 1st clause, the recipient undertaking or person shall be responsible for meeting the requirements of section 12(1)-(4).

(2) If the undertaking providing the information mentioned in subsection (1) has been granted a license to carry out the activities mentioned in sections 7-11 of the Financial Business Act in a country outside the European Union with which the Community has not entered into an agreement for the financial area, undertakings and persons covered by this Act may apply information obtained by the relevant undertaking as a basis if said undertaking is subject to requirements about the fight against money laundering and financing of terrorism similar to the requirements of the Third Money Laundering Directive, and if compliance with said requirements is being checked.

(3) Subsection (1) shall not apply to matters in the undertakings mentioned in subsection (2) if the European Commission decides under Article 40(4) of the Third Money Laundering Directive to exempt the country where the relevant undertaking has its registered office.

18. The undertaking providing information about a customer’s identity etc. pursuant to section 17 shall immediately make this information available to the recipient undertaking or person covered by this Act. Moreover, the undertaking shall, at the request of the recipient undertaking or person, immediately send relevant proof of identity and control information as well as other relevant documentation on the identity of the customer or the beneficial owner.

Enhanced customer due diligence etc.

19.-(1) The undertakings and persons covered by this Act shall, on the basis of a risk assessment, make further requirements for proof of identity by a customer than mentioned in section 12 in situations which by their nature can present a higher risk of money laundering and financing of terrorism. This means that they, as a minimum, shall meet the requirements in subsections (2)-(4).

(2) When the customer has not been physically present for identification purposes, the undertaking or person shall take further measures to ascertain the customer’s identity. This may be effected, for example, by taking one or more of the following measures:

  • 1) Ensuring that the customer’s identity is established by additional documentation.

  • 2) Checking or verifying the documents supplied, or requiring confirmatory certification by one of the undertakings or persons mentioned in section 1(1), nos. 1-11.

  • 3) Requiring that the first payment in connection with the transactions is carried out through an account opened in the customer’s name with a bank.

(3) For cross-frontier correspondent banking relationships with banks and institutions from countries outside the European Union with which the Community has not entered into an agreement for the financial area, the banks, mortgage-credit institutions and electronic money institutions covered by this Act shall, before establishing new correspondent banking relationships,

  • 1) gather sufficient information about a respondent institution to understand fully the nature of the respondent’s business and to determine from publicly available information the reputation of the institution and the quality of supervision,

  • 2) assess the counterparty’s anti-money-laundering and anti-terrorist-financing controls,

  • 3) obtain approval from senior daily management, and

  • 4) ensure that the respondent bank has checked the identity of the customers and is regularly assessing relevant information about the customers having direct access to the account of the correspondent bank with a person or undertaking covered by this Act, and ensure that the respondent bank is able to supply relevant customer information at the request of the account holder.

(4) The undertakings and persons covered by this Act shall

  • 1) have adequate procedures to determine whether the customer is a politically exposed person who is a resident of another country,

  • 2) have senior daily management approval for establishing business relationships with such customers,

  • 3) take reasonable measures to gather information about the sources of income and funds that are involved in the business relationship or transaction, and

  • 4) continuously monitor the business relationship.

(5) Banks, mortgage-credit institutions and electronic money institutions may not enter into or continue a correspondent banking relationship with a shell bank and they shall take reasonable measures to avoid a connection with a credit institution which is known to permit shell banks to use its accounts.

(6) Undertakings and persons covered by this Act shall be particularly aware of any money laundering and financing of terrorism threats that may arise from products or transactions that might favour anonymity, and take measures, if needed, to prevent that the products or transactions are used for money laundering and financing of terrorism purposes.

Simplified customer due diligence, etc.

20-(1) The requirement concerning proof of identity in sections 12 and 19(2) may be omitted with regard to the following products and transactions:

  • 1) Life-assurance and pension contracts if the amount of the annual premium is equivalent to EUR 1,000 or less or, in the case of a single premium, if the amount of the single premium is equivalent to EUR 2,500 or less.

  • 2) Life-assurance and pension contracts entered into in pursuance of a contract of employment or the business of the insured party, provided the agreement does not feature a buy-back clause and cannot be used as collateral for a loan.

  • 3) Life-assurance and pension contracts where the premium or the contribution is to be debited to the customer’s bank account.

  • 4) Life-assurance and pension contracts entered into in pursuance of a contract of employment or the business of the insured party with a limited buy-back clause, when proof of identity is given pursuant to section 12 if the customer makes use of the buy-back clause.

  • 5) Electronic money, as defined in section 308(1), 2nd and 3rd clauses of the Financial Business Act

    • a) where the maximum amount stored on non-rechargeable cards cannot exceed EUR 150, or

    • b) where the maximum amount stored on rechargeable cards cannot exceed EUR 2,500 within one calendar year, and where a maximum of EUR 1,000 can be withdrawn within one calendar year.

(2) Irrespective of the size of the transaction or the nature of the product, undertakings shall demand proof of identity if they suspect that the transaction is associated with money laundering or financing of terrorism covered by the reporting obligations under section 7.

(3) The Danish FSA may, on the basis of decisions from the European Commission, lay down regulations allowing other products or transactions to be exempted.

21.-(1) The requirements concerning proof of identity in section 12 shall not apply when the customer is

  • 1) one of the undertakings mentioned in section 1(1), nos. 1-11 and 19 or a similar undertaking with its registered office in a country within the European Union or a country with which the Community has entered into an agreement for the financial area covered by the Third Money Laundering Directive, or a similar undertaking established in a country outside the European Union with which the Community has not entered into an agreement for the financial area, subject to requirements to combat money laundering and financing of terrorism corresponding to the requirements stipulated in the Third Money Laundering Directive, and if compliance with these requirements is supervised,

  • 2) an undertaking the securities of which have been admitted to trading on a regulated market, or

  • 3) a Danish public authority.

(2) The requirements concerning proof of identity in section 12 shall not apply when the beneficial owner has funds in a client’s account of a notary or a lawyer, if the notary or the lawyer is subject to regulations corresponding to this Act. It is a condition that information about the identity of the beneficial owner etc. is made available to the account-holding institution when said institution requests this.

(3) At all events, sufficient information shall be obtained to ascertain that the customer is covered by one of the exemptions mentioned in subsections (1) and (2).

(4) The Danish FSA may, on the basis of decisions by the European Commission, lay down regulations allowing other undertakings and persons to be exempted.

22. If the European Commission so decides, the Danish FSA may decide that persons and undertakings covered by this Act are not to apply the exemption in section 21 in relation to credit institutions and finance institutions or listed undertakings or other units from a country outside the European Union with which the Community has not entered into an agreement for the financial area.

Record-keeping, etc.

23.-(1) The undertakings and persons covered by this Act shall store identity information for no less than five years after the customer relationship has ceased. Copies of the identification documents obtained pursuant to sections 12, 14, 18 and 19 may be stored.

(2) Documents and records concerning transactions shall be stored so that they can be located together for at least five years after the performance of the transactions. This shall also apply to the information recorded pursuant to section 6(2).

(3) If the undertaking ceases activities, the last acting management shall ensure that identity information etc. continues to be stored in accordance with subsections (1) and (2). If an undertaking is dissolved through the intervention of the bankruptcy court, the bankruptcy court may decide that persons other than the last acting management are to store the identity information etc.

Branches and subsidiary undertakings in third countries

24.-(1) The undertakings covered by section 1(1), nos. 1-7 and 10-12 shall ensure that their branches and subsidiary undertakings established in countries outside the European Union with which the Community has not entered into an agreement for the financial area have customer due diligence measures and storage of identity information etc. corresponding to the requirement of the Third Money Laundering Directive, to the extent that the legislation of said country allows this.

(2) If the legislation in the country mentioned in subsection (1) does not permit the use of measures similar to those mentioned in subsection (1), the undertaking shall inform the authority supervising the undertaking’s compliance with this Act, cf. part 8 of this Act. The undertaking shall also ensure that the threat of money laundering and financing of terrorism in the branch or the subsidiary undertaking is countered in another manner.

(3) The undertakings mentioned in subsection (1) shall ensure that their branches and subsidiary undertakings established in countries outside the European Union with which the Community has not entered into an agreement for the financial area have written internal rules regarding customer due diligence and record-keeping corresponding to the requirements in section 25(1) to the extent that the legislation of said country allows this.

Part 5

Internal rules and training etc.

25.-(1) The undertakings and persons covered by this Act shall prepare adequate written internal rules about customer due diligence, reporting, record-keeping, internal control, risk assessment, risk management, management controls and communication as well as training and instruction programmes for their employees in order to forestall and prevent money laundering and financing of terrorism.

(2) Undertakings and persons covered by section 1(1), nos. 1-10 shall appoint a person at management level to ensure that the undertaking complies with its obligations under this Act.

(3) Undertakings and persons covered by section 1 shall ensure that their employees know of the obligations stipulated in this Act.

(4) In employment relationships, the obligations mentioned in subsections (1) and (2) shall rest on the employer.

(5) The Danish FSA may lay down more detailed regulations on the requirements mentioned in subsection (1).

Part 6

Duty of confidentiality and liability

26. The notifications and information that undertakings and persons covered by this Act disclose in good faith pursuant to section 7 and suspension of transactions pursuant to section 7(4) shall not incur any liability on the undertaking or person, its employees or management. Disclosure of information in connection with this shall not be considered a breach of any duty of confidentiality.

27.-(1) Undertakings and persons covered by this Act, management and employees in said undertakings and employees of said persons as well as auditors or other persons carrying out or having carried out special tasks for the undertaking or person shall be obliged to keep secret the fact that notification has been effected under section 7, that this is being considered, or that an investigation of whether this is a case of money laundering or financing of terrorism has been or will be instigated, cf. however subsections (2)-(6).

(2) Information that notification has been effected under section 7, that this is being considered, or that an investigation of whether this is a case of money laundering or financing of terrorism has been or will be instigated may be divulged to the authorities and organisations that supervise compliance with this Act.

(3) The prohibition laid down in subsection (1) shall not prevent lawyers, auditors, external accountants and tax advisors from discouraging their client from carrying out illegal activities.

(4) Information that notification has been effected under section 7, that this is being considered, or that an investigation of whether this is a case of money laundering or financing of terrorism has been or will be instigated may be divulged to undertakings belonging to the same group as defined by Article 2(12) of Directive 2002/87/EC.

(5) Information that notification has been effected under section 7, that this is being considered, or that an investigation of whether this is a case of money laundering or financing of terrorism has been or will be instigated may be divulged between persons as mentioned in section 1(1), nos. 13-15 if both the person divulging the information and the person receiving the information carry out their activities within the same legal unit or network.

(6) Information that notification has been effected under section 7, that this is being considered, or that an investigation of whether this is a case of money laundering or financing of terrorism has been or will be instigated may be divulged between persons or undertakings covered by section 1(1), nos. 1-14 provided

  • 1) that the information relates to an undertaking or person that is a customer of both the undertaking or person divulging the information and the undertaking or person receiving the information, and that the information relates to a transaction involving both parties,

  • 2) that the undertaking or person divulging the information and the undertaking or person receiving the information have the same occupation,

  • 3) that the undertaking or person divulging the information and the undertaking or person receiving the information are subject to uniform requirements as regards duty of confidentiality and protection of personal data, and

  • 4) that the information exchanged is only applied for prevention of money laundering and financing of terrorism.

(7) Information as mentioned in subsections (4)-(6) may only be divulged to undertakings and persons that have their registered offices or are domiciled in a country outside the European Union with which the Community has not entered into an agreement for the financial area, if the undertaking or person is subject to requirements to combat money laundering and financing of terrorism corresponding to the requirements stipulated in the Third Money Laundering Directive and that compliance with these requirements is being supervised.

28. The Danish FSA shall inform the other Member States and the European Commission of matters where it decides that a country outside the European Union with which the Community has not entered into an agreement for the financial area does have requirements to combat money laundering and financing of terrorism corresponding to the requirements stipulated in the Third Money Laundering Directive and that compliance with these requirements is being supervised.

29. If the European Commission so decides, the Danish FSA may decide that undertakings and persons covered by this Act are not to divulge information to countries outside the European Union with which the Community has not entered into an agreement for the financial area pursuant to section 27.

Part 7

Counterfeit money

30. Undertakings and persons that, as part of their activities, take part in handling and delivery of notes and coins to the general public, including persons and undertakings the activity of which consists of exchanging notes and coins of various currencies, shall remove from circulation all notes and coins that they know or have reason to believe are counterfeit. Counterfeit banknotes and coins shall be submitted to the Police immediately.

Part 8

Registration and supervision etc.

31.-(1) Persons and undertakings covered by section 1(1), nos. 11 and 18 shall be registered with the Danish Commerce and Companies Agency in order to carry out such activities.

(2) The Danish Commerce and Companies Agency shall refuse to register the persons and undertakings mentioned in subsection (1) if the persons or members of management mentioned or the beneficial owners of the undertaking have been convicted of a criminal offence and such offence gives reason to believe that there is an immediate danger that the position or business may be abused, cf. section 78(2) of the Criminal Code.

(3) The Danish Commerce and Companies Agency shall deregister a person or undertaking mentioned in subsection (1) if a registered person or a member of management or the beneficial owners of a registered undertaking do not comply with the requirement in subsection (2).

32.-(1) The Danish Commerce and Companies Agency shall ensure that undertakings and persons covered by section 1(1), nos. 11 and 15-18 comply with this Act and the regulations issued pursuant hereto.

(2) Supervision under subsection (1) of undertakings and persons covered by section 1(1), nos. 15-18 shall be carried out on the basis of an assessment of the risk of money laundering and financing of terrorism.

(3) The undertakings and persons mentioned in subsection (1) shall provide the Danish Commerce and Companies Agency with all information necessary for supervision of compliance with this Act or regulations issued pursuant hereto.

(4) The Danish Commerce and Companies Agency may at all times, on proof of identity and without a court order, gain access to undertakings and persons covered by section 1(1), no. 11 with a view to obtaining information, including during inspections.

(5) The Danish Commerce and Companies Agency may use external assistance in supervision under subsection (1).

33. The Danish Commerce and Companies Agency may, for the undertakings and persons mentioned in section 31, lay down more detailed regulations regarding notification, registration and public disclosure, including regulations stipulating which information is to be registered and which matters applicants or others may submit and register electronically themselves in the Agency’s computer system by using a digital or similar electronic signature, and regarding the use of such a system.

34.-(1) The Danish FSA shall ensure that undertakings and persons covered by section 1(1), nos. 1-10 and 12 of this Act comply with this Act and the regulations issued pursuant hereto.

(2) Persons and undertakings covered by section 1(1), no. 12 shall be registered with the Danish FSA.

(3) The undertakings and persons mentioned in subsection (1) shall provide the Danish FSA with the information necessary for supervision of compliance with this Act or regulations issued pursuant hereto.

(4) The Danish FSA may at all times, on proof of identity and without a court order, gain access to undertakings and persons covered by subsection (1) with a view to gathering information, including during inspections.

(5) The Danish FSA may order that proof of identity and collection of information be effected in accordance with section 12(8).

Feedback

35.-(1) The Public Prosecutor for Serious Economic Crime may, if investigative considerations do not contradict this, inform the notifying person about the status of the matter, including whether a charge has been made, and may inform about deletion from the money laundering register at the Public Prosecutor for Serious Economic Crime, and about a final decision, on conviction possibly in the form of a judgment or a transcript of a judgment.

(2) The notifications mentioned in subsection (1) may not unlawfully be divulged to others.

Part 10

Provisions regarding appeals

36. Decisions made by the Danish FSA or the Danish Commerce and Companies Agency under this Act or regulations issued pursuant to this Act may be brought before the Company Appeals Board by the person against whom said decision is directed no later than four weeks after the person concerned has been notified about the decision.

Part 11

Penalties

37.-(1) Intentional or grossly negligent violation of section 2; section 6(2), 2nd clause; section 7(1), 2nd clause, (3) and (4), 1st clause; section 11; section 12(1)-(6); section 13(1), 1st and 3rd clauses, (2) and (3), 2nd clause; section 14; section 15; section 16(1); section 19(1), (2), 1st clause and (3)-(5); section 23(1), 1st clause, (2) and (3), 1st clause; section 24 section 25(1)-(3); section 27(1); section 30, 2nd clause; section 31(1); section 32(3); and section 34(2) and (3) shall be subject to a fine. Intentional or grossly negligent violation of section 35(2) shall be subject to a fine, unless more severe punishment is incurred under the regulations of the Criminal Code.

(2) In the event of particularly gross or extensive intentional violations of section 2; section 7(1), 2nd clause, (3) and (4), 1st clause; section 12(1)-(6); sections 14, 15 and 16(1); and section 23(1), 1st clause, (2) and (3), 1st clause, the penalty may be increased to imprisonment of up to six months.

(3) In regulations issued by the Danish FSA or the Danish Commerce and Companies Agency pursuant to sections 10 and 33, fines may be stipulated for intentional or grossly negligent violation of the provisions of said regulations.

(4) If a person or undertaking omits to fulfil the duties and obligations imposed on them pursuant to section 32(3) and section 34(3), the Danish Commerce and Companies Agency and the Danish FSA respectively may, as a coercive measure, impose daily or weekly fines on the person, or undertaking or on the persons responsible for said undertaking.

(5) Any person or undertaking failing to comply with an order issued pursuant to section 34(5) shall be liable to a fine.

(6) Companies, etc. (legal persons) may incur criminal liability according to the regulations in chapter 5 of the Criminal Code.

Part 12

Entry into force and transitional provisions, etc.

38.-(1) This Act shall enter into force on 1 March 2006, cf. however subsection (3).

(2) At the same time, the Act on Measures to Prevent Money Laundering and Financing of Terrorism, cf. Consolidated Act no. 132 of 1 March 2005 shall be repealed.

(3) Section 6(2), section 12(5) and section 19 shall enter into force on 1 January 2007.

39. The provisions of section 31(2) and (3) shall not apply to undertakings and persons carrying out activities covered by section 1(1), nos. 11 and 18 on the date of entry into force of this Act.

40. The “lov om visse betalingsmidler” (act on certain means of payment), cf. Consolidated Act no. 1501 of 20 December 2004, as amended most recently by Act no. 603 of 24 June 2005 shall be amended as follows:

1. In section 10, the following shall be inserted as subsection (2):

“(2) The obligation to receive cash payment under subsection (1) shall not apply to retailers and auctioneers in the event of cash payments of DKK 100,000 or more and payment is effected in one instance or as several payments that seem to be mutually connected.”

41. This Act shall not extend to Greenland and the Faeroe Islands, but may be brought into force by Royal Decree for these parts of the Realm subject to any variations in their operation necessitated by the specific conditions prevailing in Greenland and the Faeroe Islands respectively

Annex 1

1) Acceptance of deposits and other repayable funds.

2) Lending, including

  • consumer credit,

  • mortgage-credit loans,

  • factoring and discounting,

  • financing of commercial transactions (including forfeiting).

3) Financial leasing.

4) Payment services (money transmission services).

5) Issue and administration of means of payment (e.g. credit cards, travellers’ cheques, and bankers’ drafts).

6) Guarantees and collateralisation.

7) Trading for own account or for account of customers in:

  • a) money market instruments (cheques, bills, certificates of deposit, etc.)

  • b) the foreign exchange market

  • c) financial futures and options

  • d) currency and interest rate instruments, and

  • e) securities.

8) Participation in issuing securities and provision of related services.

9) Advice to undertakings on capital structure, industrial strategy and related questions and advice, and services relating to mergers and the acquisition of undertakings.

10) Money broking.

11) Portfolio management and advice.

12) Safekeeping and administration of securities.

13) Safe custody services.

Christiansborg Slot, 27 February 2006

Under Our Royal Hand and Seal

In the Name of the Queen:

FREDERIK

Crown Prince

/Bendt Bendtsen

Official notes

1) This Act contains provisions implementing parts of European Parliament and Council Directive (2005/60/EC) of 26 October 2005 on the prevention of the use of the financial system for the purpose of money laundering and terrorist financing (Official Journal 2005, L 309, p. 15). The Act includes certain provisions from Council Regulation no. 1338/2001 of 28 June 2001 laying down measures necessary for the protection of the euro against counterfeiting, (Official Journal 2001, L 181, p. 6) and Council Regulation no. 1339/2001 of 28 June 2001 extending the effects of Regulation no. 1338/2001 laying down measures necessary for the protection of the euro against counterfeiting to those Member States which have not adopted the euro as their single currency, (Official Journal 2001, L 181, p. 11). According to Article 249 of the EC Treaty, a Regulation applies immediately in each Member State. The reproduction of these provisions in this Act is thus only due to practical considerations and does not affect the immediate validity of the Regulations in Denmark.

Links to EC directives, cf. note 1

Directive 2005/60/EC Celex no. 32005L0060

Annex III: List of all laws, regulations and other material received

A. Laws on Money Laundering and the Financing of Terrorism

1. The Act on Measures to Prevent Money Laundering and the Financing of Terrorism, (Money Laundering Act), March 2006

2. The Act on Measures to Prevent Money Laundering and the Financing of Terrorism, Consolidated Act. No. 132 of 1 March 2005

B. Other Laws related to ML/FT

3. The Foundation Act

4. The Foundation Tax Act

5. The Commercial Foundation Act

6. The Danish Act relating to the Takeover of Affairs and Fields of affairs by the Faeroe Islands Public Authorities, 2005

7. The Home Rule Act of the Faeroe Islands, 1948

8. Act No. 1383 of 20 December 2004 amending the Financial Business Act, the Act on Measures to Prevent Money laundering amd the Financing of terrorism

9. The Customs Act, (Extracts)

10. The Financial Business Act, cf. Consolidated Act No. 90 of 3 Febuary 2005, with amendments consequential upon section 2 of Act no. 387 of 30 May 2005, section 2 of Act no. 411 of 1 June 2005 and section 84 of Act no. 431 of 6 June 2005 (Extracts)

11. The Insurance Mediation Act

12. The Investment Associations and special Purpose Associations as well as other Collective Investment Schemes Act

13. The Securities Trading etc. Act

14. The Criminal Code (Extracts)

15. The Administration of Justice Act (Extracts)

16. The Gambling Casino Act, as amended by Act no. 366 of may 24, 2005, and Act No. 443 of May 31, 2000

17. The Public Collections and Pyramid Gambling Act (Extracts)

18. Order on Public Collections (Extracts)

19. the Act on Processing of Personal Data (Extracts)

20. The Public Administration Act (Extracts)

21. The Securities Trading, etc Act (Extracts)

22. The Trade Marks Act (Extracts)

23. The Danish Act on the Central Business Register, Act No. 417 of 22nd May 1996

24. Law No.433 of 10 June 2003, amending the Law on Extradition of offenders and the law on the Extradition of offenders to Finland, Iceland, Norway and Sweden

25. The Danish Private Companies Act, Consolidation Act No. 325 of 7 May 2000.

26. Act of June 6, 2002, No. 378, on amendments to the Danish Criminal Code, Danish Administration of justice act, Act on Competition and Consumer matters in the Telecommunication Market, the Weapons Act, the Extradition Act

27. Consolidated Act of August 25, 2005, No. 833, on the Extradition of Criminals

28. The Danish Act on International Enforcement of Criminal judgments, Consolidated Act of 18 july, 2005, No. 740

29. Home Rule Act of the Faroe Islands, No. 137 of March 23rd, 1948

30. Consolidated Act no. 613 of 21 June 2005 on the reorganisation and winding-up of insurance undertakings

31. Collective Investment Schemes etc Act

C. Other Legislative Instruments-Decrees, Orders

32. Directive 2005/60/EC of the European Parliament and the Council- 26 October 2005

33. Explanatory Notes to the Proposal for Act on Measures to prevent Money Laundering and the Financing of terrorism

34. Legal Notice No. 496 of June 13, 1994, on Gambling Casinos, as amended by Notice No. 248 of april 4, 2000, and Notice No. 997 of december 9, 2002.

35. Order on Gambling Casinos

36. Proposal for a Regulation on information on the payer accompanying transfer of funds

37. Circular Letter from Ministry of Justice, 30 June 1993

38. Circular Letter from Ministry of Justice, 7 March 2005

39. Directive 2005/60/EC of the European and of the Council, of 26 October 2005, on the prevention of the use of the financial system for the purpose of money laundering and terrorist financing.

40. Note on The Faeroe Islands Home Rule Arrangement

41. Note on The Greenland Home Rule Arrangement

42. Note on Replies to Questions Asked by the Danish Financial Supervisory Authority in Connection with the IMF’s Ongoing Examination of denmark

43. The Ministry of Justice: Circular Letter to the Police and the prosecution, 30 June 1993

44. Circular Letter from Ministry of Justice, 7 March 2005

D. Other documents communicated

45. Comments from the Ministry of Justice on the first Draft Detailed Assessment Report on Anti-Money Laundering and the Combating the Financing of Terrorism (received on 16 March 2006).

46. Comments received by FATF on cooperation with Denmark on extradition, mutual legal assistance

47. Statistics 2005-Compulsory STRs, including ID hits, seizures, STRs investigated

48. Nykredit- Prevention of Money laundering and financing of terrorism

49. Guidelines on combating money laundering and terrorist financing

50. IMF Assessment: Anti-Money Laundering and Combating the Financing of Terrorism 6 March 2006- The Audit Profession

51. Lovbekendtgorelse 1994-10-10 nr.861 om spillekasinoer: Hvidvaskning af penge, Skaaerpede kontrolbestemmelser

52. The DCCA: Aspects of the work with the MLA

53. Justitsministeriet, Lovafdelingen: Criminal Code, Part 10.

54. Erhvervs-OG- Selskabsstyrelsen: On-site Inspections: Face-to-face to the customer service

55. Social Ministeriet: Grant from the Grant Programme for Development of Voluntary Social Work (PUF), 23 Febuary 2006

56. Justitsministeriet, Answers to questions asked Febuary 13, 2006

57. Course in Economic Crime

58. Justitsministeriet, Criminal Code, Faroe Islands

59. Justitsministeriet, Extension of the scheme in the Self Assessment Report, p 29

60. Bekaempelse af terrorfinansiering og hvidvask af penge

61. Greenland-Introduction

62. Regulation of the European Parliament and of the Council on information on the payer accompanyying transfers of funds, 25 November 2005

63. Finanstilsynet: History of the FSA

64. Finanstilsynet: Collective Investment Schemes

65. Finanstilsynet: Mortgage Banks and Investment Companies Division

66. Detailed Assessment Questionnaire: Anti-Money Laundering and Combating the financing of terrorism, December 2005

67. RIGSPOLITET, Organised Crime in Denmark in 2004

68. Explanatory Notes to the Proposal for Act on Measures to prevent Money Laundering and Financing of Terrorism (Money laundering Act)

69. Guidelines issued by the Bankers Association

70. The Investment Association and Special-Purpose Associations

71. Comments by the Danish authorities on chapters in the first draft, on Cross Border transactions, FIU.

72. Overview of information concerning the Danish NPO sector

73. Requirements concerning NPO’s

74. Special Requirements for NPO’s with commercial activities, tax exemptions, public collections, or public grants.

75. Answers from TAX to the questions sent 14 March 2006

76. Checklist on Money Laundering

77. Legislation against money laundering and financing of terrorism

78. Comments: Supplementary Document Request- Evaluation team Comment

79. Answers to comments: Supplementary Request

80. Your Contribution could end up in the Wrong Hands

81. Justttsministeriet, The Anti-Terrorism Act of the Ministry of Justice: elements, 12. Dec. 2001

82. Inspection on Site, Measures against Money Laundering, December 2004

83. The Money Laundering Secretariat, Annual Report 2004, Public Prosecutor for Serious Economic Crime.

84. Self-Assessment Questionnaire: FATF Special Recommendations on Terrorist Financing

85. VEJLEDNING for advokater og advokafirmaer om forebyggende foranstaltninger mod hvidvaskning af penge og finansiering af terrorisme

Money Laundering

Extract of DANISH CRIMINAL CODE Unofficial Translation April, 2006
Chapter 28 Property Offences

Section 290. (l) Any person who unlawfully accepts or acquires for himself or others a share in profits, which are obtained by a punishable violation of the law, and any person who unlawfully by concealing, keeping, transporting, assisting in disposal or in a similar manner subsequently serves to ensure, for the benefit of another person, the profits of a punishable violation of the law, shall be guilty of receiving of stolen goods and liable to a fine or imprisonment for any term not exceeding one year and six months.

(2) When the receiving of stolen goods is of a particularly aggravated nature, especially because of the commercial character of the offence, or in consequence of the amount of the gain obtained or intended to be obtained, or where a large number of offences have been committed, the penalty may be increased to imprisonment for any term not exceeding six years.

(3) Punishment pursuant to this provision can not be imposed on a person, who accepts profits as an ordinary subsistence from family members or cohabiter, or any person who accepts profits as a normal payment for ordinary consumer goods, articles for everyday use, or services.

Financing of Terrorism

Extract of DANISH CRIMINAL CODE Unofficial Translation April, 2006
Chapter 13 Offences Against the Constitution and the Supreme Authorities of the State etc.

Section 114. (1) Any person is liable to imprisonment for any term up to life imprisonment if he commits one or more of the following offences with the intent seriously to intimidate a population or unlawfully to compel Danish or foreign public authorities or an international organisation to do or to abstain from doing any act or to destabilise or destroy the fundamental political, constitutional, economic or social structures of a country or an international organisation, provided that the offence may inflict serious harm on a country or an international organisation by virtue of its nature or the context in which it is committed:

  • 1) Homicide under Section 237.

  • 2) Assault under Section 245 or 246.

  • 3) Deprivation of liberty under Section 261.

  • 4) Impairment of the safe operation of means of transport under Section 184 (1), unlawful disturbances in the operation of public means of communication, etc., under Section 193 (1) or very serious damage to property under Section 291 (2), where such offences are committed in a manner likely to endanger human lives or cause considerable economic loss.

  • 5) Unlawful seizure of public means of transport under Section 183a.

  • 6) Serious violations of the arms legislation under Section 192a or under Section 10 (2) of the Act on Weapons and Explosives.

  • 7) Arson under Section 180, explosion, spreading of noxious gases, floods, shipwreck or any railway or other traffic accident under Section 183 (1) and (2), injurious pollution of the water supply under Section 186 (1), injurious poisoning or pollution of products intended for general use, etc., under Section 187 (1).

(2) The same penalty shall apply to any person who transports weapons or explosives with the intent as referred to in Subsection (1) hereof.

(3) The same penalty shall also apply to any person who threatens to commit one of the offences listed in Subsections (1) and (2) hereof with the intent as referred to in Subsection (1) hereof.

Section 114a. Any person is liable to imprisonment for any term not exceeding 10 years if he:

  • 1) directly or indirectly grants financial support to;

  • 2) directly of indirectly provides or collects funds for; or

  • 3) directly of indirectly makes money, other financial assets or financial or other similar services available to

a person, a group of persons or an association that commits or intends to commit terrorist acts comprised by Section 114.

Section 114b. Any person is liable to imprisonment for any term not exceeding six years if he otherwise contributes by instigation, advice or action to furthering the criminal activity or the common purpose of a group of persons or an association which commits one or more of the offences comprised by Section 114 or Section 114a, no. 1) or 2), where such activity or purpose involves the commission of one or more offences of such nature.

Section 114c. Any person who, by any act other than those included under Sections 114-114b of this Act, participates in or provides significant financial support or other significant support to any corps, group or association, which intends, by use of force, to exert influence on public affairs or give rise to disturbances of the public order, shall be liable to imprisonment for any term not exceeding six years.

Section 114d. Any person who, by any act other than those included under Sections 114-114c of this Act, participates in an unlawful military organization or group, shall be liable to a fine or to imprisonment for any term not exceeding two years.

Section 114e. Any person who under aggravating circumstances in contravention of the legislation on non proliferation of weapons of mass destruction etc.

  • 1) exports products with dual use without permission;

  • 2) for the use by the authorities in making decisions about products with dual use gives incorrect or misleading information or suppresses information of significance for the decision in the case; or

  • 3) acts in violation of conditions, which are stipulated in the authorities’ decisions about products with dual use;

shall be liable to imprisonment for any term not exceeding six years.

Section 118a. The offences referred to in Sections 111-115 and 118 of this Act shall in all cases be dealt with by public prosecution, to be instituted by the order of the Minister of Justice.

Seizure and Confiscation

Extract of DANISH CRIMINAL CODE Unofficial Translation April, 2006
Chapter 9 Other legal Consequences of a Punishable Act

Section 75. (1) The proceeds gained from any criminal act, or a sum equivalent thereto, may, either wholly or in part, be confiscated. Where the size of such an amount has not been sufficiently established, a sum thought to be equivalent to the proceeds may be confiscated.

(2) The following objects may also be confiscated where this must be regarded as necessary in order to prevent further offences, or if warranted by special circumstances:

  • 1) objects which have been used, or were intended to be used, in a criminal act;

  • 2) objects produced by a criminal act; and

  • 3) objects with respect to which a criminal act has otherwise been committed.

(3) In place of confiscation of the objects referred to in Subsection (2) above, a sum may instead be confiscated which is equivalent to their value or a part thereof.

(4) In place of confiscation under Subsection (2) above, arrangements concerning the objects may instead be decided upon for the purpose of preventing further offences.

(5) When an association is dissolved by judgment, its capital, documents, protocols etc. may be confiscated.

Section 76 (1) Confiscation under Section 75 (1) of this Act may be from any person to whom the proceeds of a criminal act have directly passed.

(2) Confiscation of the objects and amounts referred to in Section 75 (2) and (3) of this Act may be from any person who is responsible for the offence and also from someone on whose behalf such a person has acted.

(3) Specially protected rights over confiscated objects lapse only after the court’s decision under circumstances similar to those referred to in Subsection (2) above.

(4) Where one of the persons referred to in Subsections (1) and (2) above has, after the criminal act, disposed of the proceeds or of objects of the kind referred to in Section 75 (2) of this Act, or of rights of these, the transferred property or its value may be confiscated from the acquirer if he knew of the connection of the transferred property to the criminal act, or has displayed gross negligence in this respect, or if the transfer to him was gratuitous.

(5) Where a person who is liable to confiscation under Subsections (1)-(4) dies, his liability lapses. This shall not apply to confiscation under Section 75 (1) of this Act.

Section 76a. (l) Total or partial confiscation of property belonging to a person found guilty of a punishable act may take place when

  • 1) the act committed is of a nature which may entail a significant gain; and

  • 2) according to the law, the act committed is punishable by imprisonment of six years of more or it is a violation of the legislation on euphoriants.

(2) Under conditions mentioned in Subsection (1) above, total or partial confiscation of property which the spouse or cohabitant of the offender has acquired may take place unless

  • 1) the property has been acquired more than five years prior to the punishable act upon which the confiscation according to Subsection (1) is based; or

  • 2) the matrimony or cohabitation was not in force at the time of acquisition.

(3) Under conditions mentioned in Subsection (1) above, total or partial confiscation of property transferred to a legal person upon whom the offender, alone or together with his closest relations, has a decisive influence, may take place. The same shall apply if the person in question received a significant part of the income of the legal person. Confiscation may not take place if the property was transferred to the legal person more than five years prior to the punishable act upon which confiscation according to Subsection (1) above is based.

(4) Confiscation according to Subsections (1)-(3) above may not take place if the offender renders probable that the property has been acquired in a legal way or with legally acquired means.

(5) In place of confiscation of certain property according to Subsections (1)-(3) above, an amount corresponding to the value of the property or a part of the value, may be confiscated.

Section 77. (1) Where there is confiscation under Section 75 (1) or 76 a of this Act and a person has claim to damages on account of the offence, the confiscated property may be used in satisfaction of the claim of damages.

(2) The same shall apply to objects and amounts confiscated under Section 75 (2) and (3) of this Act, if a decision to this effect is made in the sentence.

(3) Where the offender has, in one of the situations referred to in Subsections (1) and (2) above, paid the injured party compensation according to the sentence, the confiscated sum shall be reduced accordingly.

Section 77a. Where there is reason to believe that objects, which because of their character in connection with other existing circumstances, may be used in a criminal act, they may be confiscated if this measure is regarded as necessary for the prevention of the criminal act. Under the same conditions confiscation of other assets, including money, may take place. Section 75 (4) of this Act shall similarly apply here.

Section 78. (1) A punishable offence shall not involve the suspension of civil rights, including the right to carry on business under an ordinary license or a maritime license.

(2) A person who has been convicted of a punishab1e offence may be debarred from a business requiring a special public authorisation or permission, if the offence committed carries with it an obvious risk of abuse of the position or the occupation concerned.

(3) The question whether the offence committed implies an objection to carrying on a business of the nature referred to in Subsection (2) above shall, at the request of the person whose application for such authorisation or approval has been refused or of any competent authority, be brought before the court by the Prosecuting Authority. Section 59 (2) of this Act shall similarly apply here. The question shall be decided by Court Order. If, according to the decision, the person concerned shall not be allowed to carry on his business, the question may be brought before the court again, but at the earliest after at least two years. Authorisation or permission may also be given by the competent authority before the expiration of this time limit.

Section 79. (1) A person carrying on one of the undertakings referred to in Section 78 (2) of this Act may, on conviction of a punishable offence, be deprived of the right to continue to carry on the business concerned or to carry it on in certain forms if the offence committed carries with it an obvious risk of abuse of the position.

(2) If warranted by special circumstances, the same shall apply to the carrying on of other forms of business. According to the same rule a person can be deprived of his right to be original subscriber to or to be manager or board member of a company with limited liability, or a company or association presupposing a specific public confirmation, or a foundation.

(3) The deprivation of such a right shall be made for a period of not less than one year nor more than five years, as from the date of the final sentence, or indefinitely; in the latter case, the question as to whether the person concerned shall continue to be excluded from carrying on the business may, at the expiration of five years, be brought before the court according to the rules contained in Section 78(3) of this Act. If warranted by special circumstances, the Minister of Justice may permit the case to be brought before the court before the expiration of the time limit of five years referred to in the first sentence.

(4) While a case of the kind referred to in Subsections (1) and (2) above is being heard, the court may, by Court Order, debar the person concerned from carrying on the business until the case is finally decided. In its judgment, the court may decide that appeal shall have no suspensory effect.

DANISH ADMINISTRATION OF JUSTICE ACT
Chapter 73 Search

Section 793. (1) Pursuant to the rules of this Chapter the police can conduct searches of

  • 1) residences or other dwellings, documents, papers, and similar, as well as the contents of locked objects, and

  • 2) other objects as well as premises other than dwellings.

(2) Searches of premises or objects, which are freely accessible to the police, are not regulated by the rules of this Chapter.

(3) A search to locate a suspect, who is to be arrested, or a person, who is to be taken into custody for the purpose of enforcing a punishment or the alternative penalty in default of payment of a fine, can further take place pursuant to Sections 759 and 761. As for examination of the body of a person and searching the clothes, which the individual is wearing, the rules of Chapter 72 apply. As for examination of letters, telegrams, and similar mail deliveries, the rules of Chapter 71 apply.

Section 794. (1) Searches of dwellings, other premises or objects, of which a suspect has possession, can only be conducted if

  • 1) the individual on reasonable grounds is suspected of an offence, which is indictable by the State, and

  • 2) the search must be presumed to be of significant importance for the investigation.

(2) As for searches of the kinds mentioned in Section 793 (1), no. l, it is further required, either that the case concerns an offence, which under the law can result in imprisonment, or that there are specific reasons to presume that evidence in the case or objects, which can be seized, can be found by the search.

(3) If, during the search of the possessions of a suspect, written messages or similar are found, which originate from a person, who pursuant to the rules of Section 170 is excluded from giving testimony as a witness in the case, searches hereof must not be conducted. The same applies to material, which originates from a person, who is included in Section 172, when the material contains information, which the individual pursuant to Section 172 is exempted from testifying about as a witness in the case.

Section 795. (1) Searches of dwellings, other premises or objects, of which a person, who is not a suspect, has possession, are not regulated by the rules of this Chapter, if the individual grants written consent to the search or if, in connection with the detection or report of an offence, consent is granted by the individual. Besides, a search of the possessions of a person, who is not a suspect, may only take place, if

  • 1) the investigation concerns an offence, which under the law can result in imprisonment, and

  • 2) there are specific reasons to presume that evidence in the case or objects, which can be seized, can be found by the search.

(2) As for the possessions of persons, who pursuant to the rules of Section 170 are excluded from giving testimony as witnesses in the case, written messages and similar between the suspect and the person concerned, as well as notes and similar by this person concerning the suspect, are not subject to search. As for the possessions of persons, who are included in Section 172, material containing information about matters, which the individuals pursuant to Section 172 are exempted from testifying about as witnesses in the case, are not subject to search.

Section 796. (l) Decision of search concerning the objects or premises mentioned in Section 793 (1) no. 2, of which a suspect has possession, is made by the police.

(2) Decision of search in other situations is made by court order, cf., however, Subsections (5) and (6). The court order shall state the specific circumstances in the case upon which it is based, that the conditions for the measure are fulfilled. The court order can at any time be reversed.

(3) If the purpose of the measure would be forfeited if a court order were to be awaited, the police can make the decision to conduct the search. If the person, who has possession of the dwellings, premises or objects, against which the search is directed, puts forward a request hereof, the police shall as soon as possible, and at the latest within 24 hours, bring the case before the court, which in the form of a court order decides if the measure can be approved.

(4) Before the court makes a decision pursuant to Subsection (3), 2nd period, the person who has possession of the dwellings, premises or objects, against which the search is directed, shall be given the opportunity to make a statement. Section 748 (5) and (6) similarly apply.

(5) If the search is directed against dwellings, premises or objects, of which a suspect has possession, and this individual grants a written consent to the search being conducted, the decision of search can also be made by the police.

(6) A decision to the effect that, in connection with the detection or report of an offence, a search of the scene of the crime is to be conducted, can, regardless of the rule in Subsection (2), also be made by the police if the person, who has possession of the dwelling, premise or object concerned, is not a suspect and it is not possible to come into contact with this individual immediately. In that case, notification of the search shall be given to the individual as soon as possible.

Section 797. (l) A search must not be conducted if, considering the purpose of the measure, the significance of the case, and the offence and inconvenience, which the measure can be presumed to cause, it would be a disproportional measure.

(2) In making the decision pursuant to Subsection (1) it shall further be taken into consideration if the search involves destruction or damage of objects.

Section 798. (l) Searches shall be conducted with the utmost leniency as allowed under the circumstances, including, to the extent possible, without causing destruction or damage, and without the measure, due to the time or the way in which it is conducted, giving cause to unnecessary attention.

(2) If the person, who has possession of the dwelling, the premise or the object, or in his absence other persons are encountered, these individuals shall be informed of the conduction of the search and the grounds therefore as well as be invited to witness the search. If the search is conducted based on a court order, this shall, upon request, be shown. If the search is conducted pursuant to the rule in Section 796 (3), the police shall advise the individual of the access to bring the matter before the court. The person, who has possession of the dwelling, the premise or the object, can demand that another person of his choice witnesses the search unless time-based or investigative reasons speak against this. If the purpose of the search requires it, including if obstacles are put in the way of the conduction of the search, the police can decide that the persons encountered shall be removed while the search is taking place.

(3) If nobody is encountered when a search as described in Section 793 (1), no. 1, is to be conducted, two housemates or other witnesses shall, to the extent possible, be summoned to witness the search. After the conduction of a search as described in Section 793 (1), no. 1, the person who has possession of the dwelling or the object shall be notified hereof, and, if the search has been conducted pursuant to the rule in Section 796 (3), of the access to have the matter brought before the court; a possible manner is for the police to leave a notice in writing at the location.

Section 799. (1) If it is of crucial importance for the investigation that the search is conducted without the knowledge of the suspect or others, the court can, if the investigation concerns an intentional violation of the Criminal Code Chapter 12 or 13 or a violation of the Criminal Code Section 180, Section 183 (1) and (2), Section 183a, Section 186 (1), Section 187 (1) and Sections 191, 192a or 237, in the form of a court order make a decision to this effect and of deviating from the rules of Section 798 (2), 1st – 4th period, and Subsection (3). However, this does not apply as for searches of dwellings, other premises or objects in possession of somebody, who pursuant to the rules of Section 170 is excluded from, or who, pursuant to the rules of Section 172, is exempted from testifying as a witness in the case.

(2) The rules in Section 783 (2) and (3), Section 784, Section 785, and Section 788 apply to the cases described in Subsection (1), 1st period.

(3) The court may decide that repeated searches may be carried out within the time period which according to Subsection (2) is laid down under Section 783 (2). The court shall in this connection fix the number of searches. Under special circumstances the court may decide that an indeterminate number of searches may be carried out.

Section 800. (1) If, during a search, the police obtain information about an offence, which has not formed and which according to the rules of Section 794 (1) no. 1 and (2); Section 795 (1) no. 1; or Section 799 (1), respectively, could not form the basis for the measure, the police can use this information as part of the investigation of the criminal offence concerned, but not as evidence in court in regard to the offence.

(2) The court can decide that Subsection 1 does not apply as for information obtained by the police during a search conducted pursuant to Section 799 (1), if

  • 1) other investigative measures will not be suitable for securing evidence in the case,

  • 2) the case concerns an offence, which under the law can result in imprisonment for six years or more, and

  • 3) the court otherwise finds that it does not cause concern.

Chapter 74 Seizure and disclosure

Section 801. (1) Pursuant to the rules of this Chapter seizure can take place

  • 1) to secure evidence

  • 2) to secure the claim of the State for costs, confiscation and fine

  • 3) to secure the claim of the victim for restoration or compensation, and

  • 4) when the defendant has absconded from further prosecution of the case.

(2) Objects, which the police take into custody, of which nobody has or admits possession, and over which nobody claims a right, are not regulated by the rules of this Chapter.

(3) As for the surrender of letters, telegrams, and similar mail deliveries, as well as for information about connections between telephones, etc., the rules of Chapter 71 apply. As for the removal of objects and money in relation to arrest, the rule of Section 758 (1) further applies.

Section 802. (1) Any object at the disposal of a suspect may be seized, if

  • 1) the person in question is reasonably suspected of an offence liable to public prosecution, and

  • 2) there is reason to presume that the object may serve as evidence or should be confiscated or forfeited, but cf. Subsection (2) below, or that, through the offence, it has been swindled out of somebody who can claim it back.

(2) Goods owned by a suspect may be seized, if

  • 1) the person in question is reasonably suspected of an offence liable to public prosecution, and

  • 2) seizure is considered necessary to secure any claim of public authorities for costs, any claim for confiscation or forfeiture pursuant to Section 75 (1), first sentence, second limb, and second sentence, Section 75 (3), Section 76a (5) and Section 77 a, second sentence, and any claim for fines or the innocent party’s claim for damages in the case.

(3) A suspect’s entire property or part thereof, including any property acquired subsequently by the suspect, can be seized if -

  • 1) a charge has been made for an offence for which the potential statutory penalty is imprisonment for one year and six months or more, and

  • 2) the accused has evaded further prosecution in the case.

(4) Notices in writing or the like, originating from a person who is precluded pursuant to the rules of Section 170 from giving evidence as a witness in the case cannot be seized from a suspect. The same applies to material originating from a person falling within the scope of Section 172 when the material contains information concerning which the person is exempted from giving evidence as a witness in the case pursuant to Section 172.

Section 803. (1) Objects at the disposal of a non-suspect can be seized as part of the investigation of an offence liable to public prosecution if it can reasonably be presumed that the object can serve as evidence, should be confiscated or forfeited or, through the offence, has been swindled out of somebody who can claim it back. Other assets, such as money, at the disposal of a non-suspect can be seized as part of the investigation of an offence liable to public prosecution if it can reasonably be presumed that such assets should be confiscated or forfeited. Section 189 applies correspondingly. (2) Notices in writing between the suspect and any person who is precluded pursuant to Section 170 from giving evidence as a witness in the case and such person’s notes and the like concerning the suspect cannot be the subject of seizure from such person. Material containing information on matters concerning which any person who falls within Section 172 is exempt from giving evidence as a witness pursuant to Section 172 cannot be the subject of seizure from such person.

Section 804. (1) As part of the investigation of an offence, which is indictable by the State, a person who is not a suspect can be ordered to produce or surrender objects (disclosure), if there is reason to presume that an object, of which the individual has possession, can serve as evidence, should be confiscated or by the offence has been purloined from somebody who can claim it back.

(2) If an object has been surrendered to the police following an order of disclosure, the rules of seizure pursuant to Section 803 (1) similarly apply.

(3) If an object, without an order to this effect, has been handed over to the police due to the reasons mentioned in Subsection (1), then Section 807 (5) applies. If a request of return is made, and the police do not grant the request, the police shall as soon as possible, and at the latest within 24 hours, bring the case before the court with a petition for seizure. In this case Section 806 (3), 2nd period, and (5), 1st period, apply.

(4) An order of disclosure cannot be issued if it will produce information about matters, which the individual would be excluded or exempted from testifying about as a witness pursuant to Sections 169-172.

(5) The Minister of Justice can issue rules about financial compensation in special cases or costs relating to fulfilment of orders of disclosure.

Section 805. (1) Seizure must not take place, and orders of disclosure must not be issued, if the measure is disproportional considering the significance of the case, and the loss or the inconvenience, which the measure can be presumed to cause.

(2) If the purpose of the measure can be attained by less invasive measures, including by posing a collateral, a written agreement to this effect can be made with the individual against whom the measure is directed.

(3) As for seizure as a security for the c1aim of the State for costs, claim for confiscation pursuant to the Criminal Code Section 75 (1), 1st period, 2nd part, and 2nd period, and (3), Section 76a (5), and Section 77a, 2nd period, claims for fines or the claim of the victim for compensation, the rules of Sections 509-516 similarly apply.

Section 806. (1) Decision about seizure and orders of disclosure are made upon request of the police. Request of seizure to secure a claim for compensation can be made by the victim as well.

(2) The decision is made by the court in the form of an order, cf., however, Subsection (7). The court order shall state the specific circumstances in the case upon which it is based, that the conditions for the measure are fulfilled. The court order can at any time be reversed.

(3) If the purpose of the measure would be forfeited if a court order were to be awaited, the police can make the decision about seizure, cf., however, Subsection (4). Upon request from the individual, against whom the measure is directed, the police shall as soon as possible, and at the latest within 24 hours, bring the case before the court, which in the form of an order decides if the measure can be approved.

(4) Seizure pursuant to Section 802 (3) can only take place according to a court order. The same applies to seizure of printed works or sound or picture programmes included under the Law of Media Responsibility, which contents causes for responsibility to be imposed.

(5) Before the court makes a decision pursuant to Subsection (3), 2nd period, the person against whom the measure is directed shall have had the opportunity to make a statement. Section 748 (5) and (6) similarly apply.

(6) Before the court makes a decision about disclosure pursuant to Section 804, the person, who has possession of the object, shall have had the opportunity to make a statement. Section 748 (5) and (6) 6 similarly apply. The rule of the 1st period does not apply if the decision of the court is intended as the basis for an international request of disclosure.

(7) Decision of seizure is made by the police if the person, against whom the measure is directed, grants a written consent to the measure.

Section 807. (1) The police carry out seizures. If seizure takes place based on a court order, this order shall, upon request, be shown to the person, against whom the measure is directed. If seizure takes place pursuant to the rule of Section 806 (3) the police shall advise the individual of the access to have the matter brought before the court.

(2) The police ensure, by contacting the person against whom the measure is directed, that an order of disclosure is complied with. The order of the court shall, upon request, be shown to the individual. If, without valid excuse, the individual refuses to comply with the order, the rule of Section 178 similarly applies.

(3) If material is seized from persons, who are included in Section 172, the individual can demand that the first examination of the material be done by the court. Section 806 (5), 1st period, similarly applies as for the examination by the court. Until the first examination can take place the material is kept by the police.

(4) If the court has issued an order about seizure of all or a part of a property, pursuant to Section 802 (3), the police shall provide for the appointment of a guardian to administrate the seized property. The police shall register the court order about seizure according to the rules of the Law of Registration Section 48. The court order is served the defendant according to the rules in Section 159.

(5) Objects, which come into police custody as a result of seizure or orders to surrender, shall as soon as possible be recorded and marked. The police shall, upon request, issue a receipt for the reception.

1

Exchange rate taken from the Financial Times as of May 9, 2006.

2

Danske Bank’s Danish operations form the hub of a predominantly Scandinavian group, with solid market shares in Sweden and Norway. Nordea Danmark is the Danish segment of the pan-Nordic Nordea Group, which straddles the region and includes four well-established banks in Finland, Sweden, Norway, and Denmark.