Order on Relaxed Requirements for Customer Due Diligence Procedures for Electronic Money Issuers under the Money Laundering Act

Order on Relaxed Requirements for Customer Due Diligence Procedures under the Act on Preventive Measures against Money Laundering and Financing of Terrorism (the Money Laundering Act) for Issuers of Electronic Money¹)

Pursuant to Section 21, Paragraph 2, of the Act on Preventive Measures against Money Laundering and Financing of Terrorism (the Money Laundering Act), cf. Consolidation Act No. 930 of 6 September 2019, the following is enacted:

Section 1. This Order applies to credit institutions when they issue electronic money, as well as to issuers of electronic money that have been granted permission pursuant to Sections 8 or 50 of the Payments Act.

Paragraph 2. However, this Order does not apply to:

1. Cash redemption or cash withdrawal of the value of electronic money where the redeemed amount exceeds 50 euros.
2. Payment transactions initiated via the internet or otherwise through a device capable of being used for remote communication, where the amount paid exceeds 50 euros per transaction.

Section 2. Issuers of electronic money are exempt from the customer due diligence procedures in Section 11, Paragraph 1, Nos. 1-4, and Section 14 of the Money Laundering Act, when all of the following risk-mitigating conditions are met:

1. The payment instrument is not reloadable or has a maximum monthly payment transaction limit of 150 euros, which can only be used in Denmark,
2. The maximum electronically stored amount must not exceed 150 euros,
3. The payment instrument can only be used for the purchase of goods or services,
4. The payment instrument cannot be financed with anonymous electronic money, and
5. The issuer must conduct sufficient monitoring of transactions or business relationships to be able to detect unusual or suspicious transactions.

Section 3. This Order enters into force on 1 April 2020.

Paragraph 2. Order No. 1359 of 30 November 2017 on relaxed requirements for customer due diligence procedures under the Act on Preventive Measures against Money Laundering and Financing of Terrorism (the Money Laundering Act) is repealed.

The Danish Financial Supervisory Authority, 26 March 2020 JESPER BERG / Stig Nielsen

1. The Order contains provisions that implement parts of Directive (EU) 2018/843 of the European Parliament and of the Council of 30 May 2018 amending Directive (EU) 2015/849 on the prevention of the use of the financial system for the purposes of money laundering or terrorist financing, and amending Directives 2009/138/EC and 2013/36/EU, Official Journal of the European Union 2018, No. L 156, page 43.

Law Gazette A 2020 Published on 31 March 2020 26 March 2020. No. 311. Ministry of Industry, Business and Financial Affairs The Danish Financial Supervisory Authority, file no. 1952-0025 CQ001139