Regulatory Alerts2024-09-17
Order on Conditions for Establishing Subsidiaries, Branches, or Representative Offices of Entities and Persons from High-Risk Third Countries in Denmark and for Establishing Branches and Representative Offices in High-Risk Third Countries
The Danish Financial Supervisory Authority issues this order to enforce Directive 2018/843/EU by imposing strict conditions on entities from high-risk third countries seeking to establish subsidiaries, branches, or representative offices in Denmark. It mandates that such establishments require prior documentation of political commitments to address FATF deficiencies and obliges Danish entities operating in high-risk jurisdictions to conduct enhanced risk assessments, implement mitigating measures, and submit to potential external audits. The regulation introduces criminal penalties for non-compliance and repeals the previous 2021 order, with the new rules taking effect on December 30, 2024.
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