Denmark: Selected Issues

IMF Staff Country Reports, June 25, 2019

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Denmark: Selected Issues

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Bibliographic details

• Published: June 25, 2019
• Series: IMF Staff Country Reports
• DOI: https://doi.org/10.5089/9781498321136.002

Overview

• Context: Considers the Danske Bank case within a highly integrated Nordic-Baltic financial sector.
• Purpose: Compares money laundering (ML) threats and supervisory vulnerabilities across the region’s largest economies; highlights Denmark’s ongoing efforts; notes critical next steps; provides recommendations to maintain momentum for reform.
• Core finding: Denmark has taken important steps to strengthen anti-money laundering and combating the financing of terrorism (AML/CFT) supervision over the last two years.

Main findings

• Legislative and supervisory actions taken:
  • Amendments to the AML Act.
  • A significant increase in supervisory resources.
  • A concomitant increase in on-site inspections.
• Assessment:
  • These steps represent relevant and necessary responses to the ML risks facing Denmark.
  • The key policy objective is to maintain and build on the momentum Denmark has already established.

Implementation challenges and timing

• Capacity building:
  • The skills of newly hired inspectors will take time to build.
• Institutional development:
  • The elaboration of a comprehensive institutional risk assessment model will take time to complete.
  • The development of an AML/CFT supervisory manual will take time to complete.
• International cooperation:
  • Strengthened working relationships with foreign counterparts will take time to establish and operationalize.

Policy recommendations (implied actions)

• Maintain and build on recent reforms and increased supervisory activity.
• Continue to invest in inspector training and capacity development.
• Finalize and operationalize a comprehensive institutional risk assessment model.
• Develop and implement an AML/CFT supervisory manual.
• Strengthen working relationships and operational cooperation with foreign counterparts.

Content in this bundle

• Denmark Selected Issues; IMF Country Report No. 19/179; June 2019
  • Denmark Selected Issues; IMF Country Report No. 19/179; June 2019 (Markdown version)
  • Denmark Selected Issues; IMF Country Report No. 19/179; June 2019 (PDF)