The Financial Action Task Force (FATF) has published Denmark’s third enhanced follow-up report and re-rated the country on its compliance with the FATF’s AML/CFT guidelines. The aim of this report was to assess Denmark’s progress in addressing the AML/CFT deficiencies that the FATF had identified.
The FATF included Denmark in its enhanced follow-up process in 2017 after the mutual evaluation of the country’s AML/CFT framework. Since the country’s last follow-up report in November 2019, Denmark has reported back to the FATF on its progress. Denmark has since implemented several measures to strengthen its framework. As a result, the FATF has re-rated the country on several recommendations.
On 13 recommendations pertaining to targeted financial sanctions, Denmark’s rating has changed from partially compliant to largely compliant. Similarly, on 8 recommendations related to non-profit organisations, the country’s rating has changed from “partially compliant” to “largely compliant”. Furthermore, on 25 recommendations about transparency and beneficial ownership of legal arrangements and 26 recommendations about regulation and supervision of financial institutions, the country has again been re-rated from “partially compliant” to “largely compliant”.
Meanwhile, after reviewing Denmark’s measures to comply with Recommendation 15 (New technologies), the FATF has found some unresolved deficiencies. Its rating has thus been downgraded to “partially compliant” in this area. Overall, the FATF has found Denmark to be compliant on 6 of the 40 recommendations, largely compliant on 32 and partially compliant on the remaining 2. The FATF requires Denmark to keep reporting back about its progress.