Act on Preventive Measures against Money Laundering and Financing of Terrorism (the Money Laundering Act)

Act on Preventive Measures against Money Laundering and Financing of Terrorism (the Money Laundering Act)1)

Hereby is promulgated the Act on Preventive Measures against Money Laundering and Financing of Terrorism (the Money Laundering Act), cf. Act Consolidation No. 1463 of 18 November 2025, with the amendment that follows from Section 13 of Act No. 1638 of 16 December 2025.

The amendment that follows from Section 4, No. 3, of Act No. 712 of 20 June 2025 on amendment of the Act on Financial Business, the Act on Alternative Investment Fund Managers etc., the Act on Investment Funds etc., the Money Laundering Act and various other Acts (Handling of crypto exposures, preparation of ESG transition plans, new documentation requirements for institutions' management structure, allocation of responsibility and reporting lines, clearer rules for permission for credit institutions from countries outside the EU/EEA (third countries), new supervisory power for the Danish Financial Supervisory Authority to approve significant acquisitions of shareholdings in other companies, criminalization of the disclosure regulation, modernization of the rules in the FAIF-UCITS II directive, strengthening of the rules on combating national and international money laundering and establishment of a common European access point (ESAP) for submission of a number of published information etc.), is not incorporated in this Act Consolidation, as the amendment was subsequently repealed, cf. Section 14, No. 1, of Act No. 1638 of 16 December 2025 on amendment of the Act on Capital Markets, the Act on Financial Business, the Act on Investment Funds etc. and various other Acts (Repeal of national prospect threshold, partial repeal of prohibition on share classes in financial companies, insurance companies and fund brokerage companies, amendment of publication requirements upon admission to trading on a multilateral trading facility, strengthening of the Danish Financial Supervisory Authority's independence etc.).

Chapter 1
Scope and Definitions etc.

Section 1. This Act applies to the following businesses and persons, including branches, distributors and agents of these here in the country:

1. Credit institutions.
2. Mortgage credit institutions.
3. Fund brokerage companies.
4. Life insurance companies and cross-sector pension funds.
5. Savings institutions.
6. Issuers of electronic money and providers of payment services covered by Annex 1, Nos. 1-7, of the Act on Payments.
7. Insurance intermediaries, when they mediate life insurance or other investment-related insurance.
8. Other businesses and persons who professionally carry out one or more of the activities mentioned in Annex 1, cf. however subsection 7.
9. Investment management companies and managers of alternative investment funds, if these businesses have direct customer contact.
10. Danish UCITS and alternative investment funds, if these businesses have direct customer contact.
11. Operators of a regulated market that have received permission in Denmark to be an auction platform in accordance with Commission Regulation (EU) No 1031/2010 of 12 November 2010 on the timing and administrative arrangements for auctions of greenhouse gas emission allowances and other aspects related to such auctions under Directive 2003/87/EC of the European Parliament and of the Council establishing a scheme for greenhouse gas emission allowance trading within the Community.
12. Actors who have permission to bid directly at auctions covered by Commission Regulation (EU) No 1031/2010 of 12 November 2010 on the timing and administrative arrangements for auctions of greenhouse gas emission allowances and other aspects related to such auctions under Directive 2003/87/EC of the European Parliament and of the Council establishing a scheme for greenhouse gas emission allowance trading within the Community, and who are not already covered under Nos. 1 and 3.
13. Lawyers,
    a) when they provide assistance in advising clients or performing transactions for their clients in connection with i) purchase and sale of real estate or businesses, ii) management of clients' money, securities or other assets, iii) opening or management of bank accounts or securities depositories, iv) provision of necessary capital for the establishment, operation or management of businesses, or v) establishment, operation or management of businesses, funds etc., or b) when they carry out a financial transaction or a transaction concerning real estate on behalf of and for the account of a client.
14. Auditors and audit firms approved in accordance with the Auditors Act.
15. Real estate agents and real estate agency businesses, including when they act as intermediaries in connection with the letting of real estate.
16. Businesses and persons who otherwise professionally deliver the same services as the groups of persons mentioned in Nos. 13-15, including auditors who are not approved in accordance with the Auditors Act, tax advisors, external bookkeepers and any other person who undertakes to provide help, assistance or advice on tax matters as their main professional activity.
17. Providers of services to businesses, cf. Section 2, No. 12.
18. Currency exchange businesses, cf. however subsection 7.
19. Providers of games as defined in the Gaming Act, cf. however subsection 8.
20. Danmarks Nationalbank, insofar as it carries out corresponding business as institutions mentioned in No. 1.
21. Businesses and persons who professionally store, trade or mediate trade in works of art, including galleries and auction houses, where the value of the transaction or of a number of interconnected transactions amounts to 50,000 DKK or more.
22. Providers of crypto-asset services as defined in the Act on Financial Business.

Subsection 2. Section 5 applies to entrepreneurs who are not covered by subsection 1.

Subsection 3. Section 6 applies to businesses and persons who, as part of their business, participate in handling and issuing banknotes and coins to the public, including persons and businesses whose activity consists of exchanging banknotes and coins in different currencies.

Subsection 4. Section 6a applies to all legal and natural persons here in the country.

Subsection 5. Section 36a applies to foreign branches of Danish businesses.

Subsection 6. Chapter 10b applies to property insurance companies as defined in Section 9, subsection 1, No. 1, letter a, of the Act on Insurance Business in cross-sector pension funds, life insurance companies and property insurance companies etc. and branches here in the country of such foreign businesses.

Subsection 7. The Danish Financial Supervisory Authority may set rules for businesses and persons covered by subsection 1, Nos. 8 and 18, stating that this Act shall not apply in whole or in part to businesses and persons who only carry out financial activity on a limited scale.

Subsection 8. The Minister of Tax may set rules stating that this Act shall not apply in whole or in part to games, except casinos, where there is assessed to be a limited risk of money laundering or financing of terrorism.

Definitions

Section 2. In this Act, the following terms are understood as:

1. Daily management: Persons who are responsible for the daily management of a legal person, including for operations, turnover and other results.
2. Financial transaction: A transaction concerning cash or other financial assets.
3. Business relationship: A customer relationship established by the business or person covered by the Act, which is expected at the time of establishment to be of some duration, and which may include opening a customer account, customer deposit, initiation of transactions and other activities, including advisory tasks, for the customer.
4. Correspondent relationship:
   a) Provision of credit institution services from a credit institution (the correspondent) to another credit institution (the respondent), including opening a current account or another liability account, and associated services such as liquidity management, international transfers of funds, check clearing, transit accounts and currency transactions. b) A relationship between a business covered by Section 1, subsection 1, Nos. 1-12, 18 or 22, (the correspondent) and a business covered by Section 1, subsection 1, Nos. 1-12, 18 or 22, (the respondent), including where similar services are provided from a correspondent institution to a respondent institution, including relationships entered into with a view to securities transactions or transfers of funds or relationships entered into with a view to transactions with crypto-assets or transfers of crypto-assets.
5. Customer relationship: A business relationship with a customer or execution of a single transaction for a customer, including in connection with the provision of games.
6. Close relative of a politically exposed person: The spouse, registered partner, cohabitant or parents of a politically exposed person, as well as children and their spouses, registered partners or cohabitants.
7. Close business associate of a politically exposed person:
   a) A natural person who is a beneficial owner of a business or other type of legal person jointly with one or more politically exposed persons. b) A natural person who in other ways than mentioned in letter a has a close business connection with one or more politically exposed persons. c) A natural person who as the sole beneficial owner of a business or other type of legal person, it is known, has been established for the benefit of a politically exposed person.
8. Politically exposed person: A natural person who has or has had one of the following public offices:
   a) Head of state, head of government, minister, deputy minister or assistant minister and special advisor to a minister. b) Member of parliament or member of a corresponding legislative body. c) Member of the governing body of a political party. d) Supreme Court judge, member of the Constitutional Court and of another high-ranking judicial instance, if decisions are only subject to further review under extraordinary circumstances. e) Member of the Court of Audit and the highest management body of a central bank. f) Ambassador, chargé d'affaires and high-ranking officer in the armed forces. g) Member of the administrative, management or supervisory body of a state-owned enterprise or state authority. h) Director, deputy director and member of the board or person with a corresponding position in an international organization.
9. Beneficial owner: The natural person or persons who ultimately own or control the customer, or the natural person or persons on whose behalf a transaction or activity is carried out, including the following:
   a) For companies and other legal entities:
   i) The natural person or persons in a legal entity who ultimately directly or indirectly own or control a sufficient part of the shareholdings or voting rights, or who exercise control by other means, excluding owners of companies whose shareholdings are traded on a regulated market or a corresponding market subject to disclosure requirements in accordance with EU law or corresponding international standards. ii) The daily management, if, after all possibilities have been exhausted, no person under No. i has been identified, or if there is doubt as to whether the person or persons identified are the beneficial owner or owners. b) For trusts and similar legal arrangements:
   i) The settlor or settlors. ii) The trustee or trustees. iii) The protector or protectors. iv) Specifically designated beneficiaries or, if the individuals benefiting from the legal arrangement or legal entity are not yet known, the group of persons in whose main interest the legal arrangement or legal entity is established or operates. v) Any other natural person who ultimately exercises control over the trust through direct or indirect ownership or by other means. c) The board and the natural person or persons in funds who hold corresponding or similar positions as mentioned in letter b, Nos. ii-v, with the necessary deviations due to the special characteristics of funds.
10. Transaction: One or more actions whereby one or more assets are transferred or conveyed.
11. Shell bank: A business that carries out business corresponding to businesses covered by Section 1, subsection 1, Nos. 1-10 or 18, which is not physically present in the country where it is located, is not managed or administered in the country in question, and is not part of a regulated financial group.
12. Provider of services to businesses: Any person who is not covered by Section 1, subsection 1, Nos. 13-15, when this person professionally carries out the following business:
    a) Establishes companies, businesses or other legal persons. b) Acts as or ensures that another person acts as a management member in a business, or participates in a partnership or a corresponding position in other businesses. c) Provides a registered address or other address, which is similarly intended as a contact address and associated services, for a business. d) Acts as or ensures that another person acts as trustee or administrator of a fund, trust or similar legal arrangement. e) Acts as or ensures that another person acts as nominee for a third party, unless it concerns a business whose shareholdings etc. are traded on a regulated market or a corresponding market subject to disclosure requirements in accordance with EU law or corresponding international standards.
13. Asset: Assets of any kind, whether movable or immovable property or tangible or intangible assets, and legal documents or instruments in any form, including electronic or digital, which serve as proof of ownership rights or rights over such assets.
14. Self-regulatory body: A body that represents members of a profession and plays a role in regulating these in the execution of certain supervisory or monitoring functions and in ensuring that the rules concerning the relevant members are enforced.
15. Fiat currency: A legal tender issued by a central bank.
16. Trust: An entity that is not a legal person and is established by the settlor's wish to transfer assets to a trustee for the benefit of one or more beneficiaries.
17. Similar legal arrangement: A type of legal arrangement that has a structure or function corresponding to the structure and function of a trust, and which is established by the settlor's wish to transfer assets to a person holding a position corresponding to the trustee of a trust.
18. Trustee or person holding a corresponding position in a similar legal arrangement: A natural or legal person who has control over the assets of the trust or a similar legal arrangement in accordance with the settlor's instructions.
19. Self-hosted address: A distributed ledger address as defined in Regulation (EU) 2023/1113 of the European Parliament and of the Council of 31 May 2023 on information accompanying transfers of funds and certain transfers of crypto-assets and amending Directive (EU) 2015/849.

Section 3. Money laundering is understood in this Act as:

1. Unjustifiably receiving or acquiring or allowing others to share in economic benefit or funds obtained by a criminal offense.
2. Unjustifiably hiding, storing, transporting, assisting in disposal or otherwise subsequently acting to secure the economic benefit or funds from a criminal offense.
3. Attempt or participation in such dispositions.

Subsection 2. Subsection 1 also includes dispositions made by the person who committed the criminal offense from which the benefit or funds originate. Money laundering, cf. subsection 1, exists regardless of whether the actions that produced the economic benefit, or the funds to be laundered, were carried out in another member state or a third country area.

Section 4. Financing of terrorism is understood in this Act as financing of terrorism as defined in Section 114b of the Penal Code, insofar as it concerns actions covered by Section 114 of the Penal Code.

Prohibition on Cash

Section 5. Entrepreneurs who are not covered by Section 1, subsection 1, may not receive cash payments of 15,000 DKK or more, whether the payment is made in one go or as several payments that are or appear to be interconnected.

Section 5a. Payments made with anonymous prepaid cards issued in third countries may not be redeemed in Denmark. Similarly, the remaining value in cash or cash withdrawal of the monetary value on such payment cards may not be redeemed in Denmark.

Counterfeit Money

Section 6. Businesses and persons who, as part of their business, participate in handling and issuing banknotes and coins to the public, including persons and businesses whose activity consists of exchanging banknotes and coins in different currencies, are obliged to take out of circulation all banknotes and coins that they know or have reason to believe are counterfeit. Banknotes and coins taken out of circulation in accordance with the first sentence must be handed over to the police immediately.

Subsection 2. Subsection 1 does not apply to banknotes and coins in euro, cf. Article 6, subsection 1, of Council Regulation (EC) No 44/2009 of 18 December 2008 amending Regulation (EC) No 1338/2001 on laying down the measures necessary for the protection of the euro against counterfeiting, which contains a similar obligation regarding euro banknotes and coins.

Prohibition on Use of 500-Euro Banknotes

Section 6a. 500-euro banknotes may not be used, including issued, deposited, exchanged, used as a means of payment or transferred, in Denmark.

Chapter 2
Risk Assessment and Risk Management

Section 7. Businesses and persons covered by this Act must identify and assess the risk that the business or person may be used for money laundering or financing of terrorism. The risk assessment must be based on the business model of the business or person and include an assessment of risk factors associated with customers, products, services and transactions, as well as delivery channels and countries or geographical areas where business activities are carried out. The risk assessment must be documented and continuously updated.

Subsection 2. The daily management in businesses covered by Section 1, subsection 1, Nos. 1-8, 9, 10, 18 and 22, but not their branches, distributors and agents here in the country, must appoint an employee who has authority to make decisions on behalf of the business in accordance with Section 8, subsection 2, Section 17, subsection 2, No. 5, Section 18, subsection 3, and Section 19, subsection 1, No. 3. The person may be a member of the business's daily management. The person must have sufficient knowledge of the business's risk of money laundering and terrorist financing to be able to make decisions that can affect the business's risk exposure. The person must furthermore have a sufficiently good reputation and must not have exhibited behavior that gives reason to assume that the person will not perform the position in a proper manner.

Subsection 3. The Minister of Industry and the Minister of Tax may within their respective areas of responsibility set rules on exceptions from the requirements in subsection 1. The Minister of Industry may set rules on exceptions from the requirements in subsection 1 regarding lawyers, cf. Section 1, subsection 1, No. 13. The Minister of Industry may set rules on exceptions for the requirements in subsection 2.

Section 8. Businesses and persons covered by this Act must have sufficient written policies, procedures and controls, which must include risk management, customer due diligence procedures, investigation, registration and reporting obligations, storage of information, employee screening and internal control for effective prevention, limitation and management of risks for money laundering and financing of terrorism. Policies, controls and procedures must be prepared based on the risk assessment carried out in accordance with Section 7, taking into account the size of the business.

Subsection 2. Policies, controls and procedures prepared in accordance with subsection 1 must be approved by the person appointed in accordance with Section 7, subsection 2.

Subsection 3. The daily management in businesses covered by Section 1, subsection 1, Nos. 1-7, but not their branches, distributors and agents here in the country, and which are obliged by other legislation to have a compliance function, must appoint a compliance officer at management level, who must control and assess whether the procedures in accordance with subsection 1 and the measures taken to remedy any deficiencies are effective, and control that the business reports to the Money Laundering Secretariat, cf. Section 26, subsection 1.

Subsection 4. Boards of directors in businesses covered by Section 1, subsection 1, Nos. 1-7, but not their branches, distributors and agents here in the country, and which have internal audit or internal review, and boards of directors in other businesses covered by Section 1, subsection 1, and which are subject to requirements for internal audit or internal review in accordance with other legislation, must ensure that the internal audit or internal review evaluates...