Order on Which Enterprises and Persons Are Exempt from the Money Laundering Act

Order on Which Enterprises and Persons Are Exempt from the Act on Preventive Measures Against Money Laundering and Financing of Terrorism (the Money Laundering Act)1)

Pursuant to Section 1, subsection 6, of the Act on Preventive Measures Against Money Laundering and Financing of Terrorism (the Money Laundering Act), cf. Act Consolidation No. 1062 of 19 May 2021, the following is enacted:

Scope of Application

Section 1. This Order applies to enterprises and persons covered by Section 1, subsection 1, items 8 and 18, of the Money Laundering Act.

General Rules on Which Enterprises and Persons May Be Exempt from the Money Laundering Act

Section 2. Enterprises and persons covered by Section 1 are exempt from the customer due diligence procedures in Section 10, item 1, and Sections 14 and 18 of the Money Laundering Act, if they solely exercise financial activity on a limited scale.

Subsection 2. To be covered by subsection 1, the following conditions must be met:

1. The total activity must be limited and must not exceed the following amounts on an annual basis: a) 70,000 euros for enterprises exercising activity as mentioned in Annex 1, items 1 and 4-12, of the Act. b) 15,000 euros for currency exchange enterprises.

2. The financial activity must be limited on a transaction basis and must not exceed the following amounts: a) 1,000 euros for activities mentioned in Annex 1, items 1 and 4-12, of the Act. b) 500 euros for currency exchange enterprises.

3. The financial activity must not be the main activity of the enterprise or person, and it must not exceed 5 percent of the relevant enterprise's or person's total turnover per year.

4. The financial activity must be an accessory business that has a direct connection to the enterprise's or person's main activity.

5. The enterprise's or person's main activity must not be an activity covered by Section 1, subsection 1, items 13-17 and 19, of the Money Laundering Act.

6. The financial activity may only be offered to customers who are covered by the enterprise's main activity.

Subsection 3. The amounts in subsection 2, item 1, are calculated per rolling 12 months.

Subsection 4. The transactions in subsection 2, item 2, include both transactions carried out at one time and several transactions that appear to be interconnected.

Subsection 5. If the enterprise or person exercises activities under more than one of the activities mentioned in subsection 2, item 1 or item 2, the lowest amount applies.

Subsection 6. Enterprises and persons covered by Section 2 must annually provide written notification to the Danish Financial Supervisory Authority that they are using the exemption in this provision.

Entry into Force

Section 3. This Order enters into force on 1 January 2022.

Subsection 2. Order No. 1358 of 30 November 2017 on which enterprises and persons may be exempt from the Act on Preventive Measures Against Money Laundering and Financing of Terrorism (the Money Laundering Act) is repealed.

1. The Order contains provisions that implement parts of Directive 2015/849/EU of the European Parliament and of the Council of 20 May 2015 on the prevention of the use of the financial system for the purpose of money laundering or terrorist financing, amending Regulation (EU) No 648/2012 of the European Parliament and of the Council and repealing Directive 2005/60/EC of the European Parliament and of the Council and Commission Directive 2006/70/EC, OJ EU 2015, No L 141, page 73.

Law Gazette A 2021 Published on 14 December 2021 9 December 2021. No. 2364. Ministry of Industry, Business and Financial Affairs Danish Financial Supervisory Authority, file no. 21-010746 CQ002001

Danish Financial Supervisory Authority, 9 December 2021 Jesper Berg / Stig Nielsen 9 December 2021. 2 No. 2364.