Order on Reporting Information for the Danish Financial Supervisory Authority's Risk Assessment of Entities Subject to the Money Laundering Act

Order on Reporting Information for the Danish Financial Supervisory Authority's Risk Assessment of Entities Subject to the Money Laundering Act

Pursuant to Section 49, Paragraph 7, and Section 78, Paragraph 6, of the Act on Preventive Measures against Money Laundering and Financing of Terrorism (the Money Laundering Act), cf. Act Consolidation No. 807 of 21 June 2024, it is hereby prescribed:

Section 1. Entities and persons, including branches, distributors, and agents of these in this country, covered by Section 1, Paragraph 1, items 1, 2, 5, 6, 11, 12, 18, and 22 of the Money Laundering Act, shall report information covered by Paragraph 3 to the Danish Financial Supervisory Authority quarterly for use in the Authority's risk assessment of the entities and persons in the field of money laundering. The deadlines are respectively 11 February, 12 May, 11 August, and 11 November. If a deadline falls on a weekend or a holiday, the deadline is extended to the next working day.

Paragraph 2. Entities and persons, including branches, distributors, and agents of these in this country, covered by Section 1, Paragraph 1, items 3, 4, and 7-10 of the Money Laundering Act, shall report information covered by Paragraph 3 to the Danish Financial Supervisory Authority annually with the deadline of 11 February. If a deadline falls on a weekend or a holiday, the deadline is extended to the next working day.

Paragraph 3. Entities and persons covered by Paragraphs 1 and 2 shall, taking into account the entity's and person's business model, customer composition, financial services, and products, report the following information:

1. The entity's assessment of its inherent risk of being used for money laundering or terrorist financing on the reference date. The assessment must be given on a scale from 1 to 10, where 1 is very low risk and 10 is very high risk.
2. Number of business locations in Denmark on the reference date.
3. Which product types the entity offered on the reference date.
4. Turnover in the reference period (stated in thousands of DKK). Turnover must be defined in the same way as in the entity's annual report.
5. Number of customer relationships in the reference period, calculated as: a) Number of established business relationships on the reference date. b) Number of customers for whom the entity has carried out single transactions in the reference period.
6. Number of customer relationships linked to foreign countries, including legal persons without a fixed place of business or similar presence in Denmark, resident natural persons with foreign citizenship, and natural persons with residence abroad, calculated for each individual jurisdiction in the reference period.
7. Number of business customers on the reference date, who are linked to sectors that the reporting entity has classified as high-risk sectors.
8. Number of customer relationships in the reference period, where the entity has offered the customer products in the form of asset management, which the entity has stated it offers under item 3.
9. Number of customer relationships established in the reference period.
10. Number of customer relationships established in the reference period without the customer's physical presence.
11. Number of customer relationships established in the reference period via third parties.
12. Number of customer relationships in the reference period, where the reporting entity has categorized the customer as a high-risk customer.
13. Number of correspondent relationships on the reference date calculated for each individual jurisdiction.
14. Number of customer transactions in the reference period.
15. Number of customer transactions in the reference period from Denmark to other jurisdictions calculated for each individual jurisdiction.
16. Volume of customer transactions in the reference period (stated in thousands of DKK) from Denmark to other jurisdictions calculated for each individual jurisdiction.
17. Number of customer transactions in the reference period to Denmark from other jurisdictions calculated for each individual jurisdiction.
18. Volume of customer transactions in the reference period (stated in thousands of DKK) to Denmark from other jurisdictions calculated for each individual jurisdiction.
19. Number of customer transactions in the reference period, where the entity has received cash.
20. Total amount of received cash in the reference period (stated in thousands of DKK).
21. Number of customer relationships in the reference period linked to a politically exposed person, a close associate of a politically exposed person, or a close cooperating partner of a politically exposed person, calculated for each individual jurisdiction.
22. Number of notifications to the Money Laundering Secretariat in the reference period.
23. Number of customer relationships in the reference period, which are linked to previous notifications to the Money Laundering Secretariat.
24. Number of business relationships that have been terminated in the reference period based on suspicion of money laundering or terrorist financing.
25. Number of customers who were rejected in the reference period before the customer relationship was established due to the risk of money laundering or terrorist financing.
26. Number of internal whistleblower reports in the reference period concerning money laundering or terrorist financing.

Paragraph 4. For entities and persons covered by Paragraph 1, the reference period runs from and including the first day to and including the last day of the quarter. For entities covered by Paragraph 2, the reference period runs from and including the first day to and including the last day of the calendar year. The reference date is the last day of the reference period.

Section 2. Reporting under Section 1 shall be done electronically using the reporting form available on the Danish Financial Supervisory Authority's website.

Section 3. Whoever intentionally or grossly negligently fails to fulfill the electronic reporting obligation under Sections 1 and 2 shall be punishable by fine.

Paragraph 2. Companies and the like (legal persons) may be subject to criminal liability according to the rules in Chapter 5 of the Criminal Code.

Section 4. This Order enters into force on 30 December 2024.

Paragraph 2. Order No. 552 of 2 May 2022 on reporting information for use in the Danish Financial Supervisory Authority's risk assessment of entities and persons covered by the Money Laundering Act is repealed.

Danish Financial Supervisory Authority, 17 September 2024 Louise Mogensen / Heidi Ravnholt 17 September 2024. No. 1062.