Order on Policy for a Healthy Corporate Culture in Credit Institutions etc.

Order on Policy for a Healthy Corporate Culture in Credit Institutions etc.

Pursuant to Section 70a, subsection 5, and Section 373, subsection 4, of the Act on Financial Business, cf. Act No. 937 of 6 September 2019, and Section 25a, subsection 5, and Section 152, subsection 7, of the Act on Payments, cf. Act No. 1024 of 3 October 2019, the following is stipulated:

Section 1. This Order applies to the following businesses:

1. Credit institutions.
2. E-money institutions.
3. Payment institutions.

Content of the Policy

Section 2. The business shall prepare a written policy that ensures and promotes a healthy corporate culture, cf. Section 70a, subsection 1, of the Act on Financial Business and Section 25a, subsection 1, of the Act on Payments.

Subsection 2. The policy shall contain the overall framework for how the business ensures a healthy corporate culture throughout the organization. The policy shall contain a description of the ethical and professional standards for the business and shall contribute to employees demonstrating honesty and integrity.

Subsection 3. The policy shall be established on the basis of the business's business model, including the business's organizational structure and the financial services and products offered by the business. The policy shall be based on the elements that define the culture the business wishes to have.

Subsection 4. The policy shall reflect the business's risks of violating financial legislation and anti-money laundering legislation, as well as the business's risks of being used for money laundering, terrorist financing, or other economic crime.

Section 3. The policy shall contain the following:

1. Principles for how the business promotes risk awareness in relation to financial legislation, money laundering, terrorist financing, and other economic crime, and conveys the board's expectation that the business's management and employees focus on these risks and actively contribute to preventing violations of financial legislation and inappropriate behavior.
2. A description of how the business promotes appropriate behavior and reduces risks that may have operational and reputational consequences through its culture and values. The policy shall set out instructions for how compliance with the policy is monitored.
3. Principles for and examples of acceptable and unacceptable behavior for the business's management and employees with a view to avoiding violations of financial legislation and avoiding money laundering, terrorist financing, and other economic crime.
4. A determination of methods to promote open communication regarding suspicion of violations of financial legislation, both internally within the business and in relation to authorities, violations of anti-money laundering legislation, and suspicion of other economic crime committed by the business, including by employees or members of the executive board or board of directors.

Tasks and Responsibilities of the Board of Directors

Section 4. The board of directors is responsible for establishing the policy, cf. Section 70a, subsection 2, of the Act on Financial Business and Section 25a, subsection 2, of the Act on Payments.

Subsection 2. The board of directors shall ensure it has sufficient knowledge to establish the policy, including a sufficient overview of the business and the obstacles that may exist to ensuring a healthy corporate culture in the specific business.

Subsection 3. The board of directors shall ensure that there is consistency between the policy and the business's other policies, including the policy on remuneration.

Section 5. The board of directors shall continuously, but at least once a year, assess whether the policy is reassuring in relation to the business's commercial activities, organization, and resources, as well as the market conditions under which the business's activities are conducted.

Subsection 2. The board of directors shall supervise that the policy is implemented, complied with, and functions as intended. This process shall be documented.

Section 6. In its annual report to the business's highest body, the chairman of the board shall account for the implementation and compliance with the policy by reviewing the policy's overall focus areas and the measures implemented to counteract risks that negatively affect the business's culture.

Official Gazette A
2020 Published on 28 May 2020
25 May 2020. No. 691.
Ministry of Industry, Business and Financial Affairs, Danish Financial Supervisory Authority, file no. 1910-0050 CQ001237

Tasks and Responsibilities of the Managing Director

Section 7. The managing director shall ensure that the policy is implemented in the business's daily operations and complied with by employees.

Subsection 2. The managing director shall ensure that new employees are made aware of the policy upon employment.

Section 8. The managing director shall ensure that the procedures for implementing and complying with the policy are clear, well-documented, and transparent.

Section 9. The managing director shall continuously report to the board of directors on the implementation and compliance with the policy.

Subsection 2. The managing director shall, in agreement with the board of directors, set intervals for reporting pursuant to subsection 1, which shall however take place at least annually.

Penalties

Section 10. Businesses that violate Section 2, subsections 2-4, and Section 3, shall be punished with a fine.

Subsection 2. Companies and other legal persons may be subject to criminal liability pursuant to the rules in Chapter 5 of the Criminal Code.

Entry into Force

Section 11. This Order enters into force on 1 July 2020.

Ministry of Industry, Business and Financial Affairs, 25 May 2020 SIMON KOLLERUP / Hans Høj 25 May 2020. No. 691.