Danish banks are governed by the Consolidated Act on Measures to prevent Money Laundering and Financing of Terrorism - also known as the Money Laundering Act. The Danske Bank Group wants to prevent money laundering and works with the authorities to this end. The Group's business procedures include measures to prevent money laundering.
Money laundering is the term used about a number of actions aimed at disguising the source of funds originating from illegal actions.
A number of actions, including banking transactions, can be taken to conceal the origin of funds. This can make banks the unwilling means of money laundering.
A network of accounts, balance transfers, and securities and foreign exchange transactions may make it very hard to trace the origin of an amount.
The Group's business procedure
The purpose of the business procedures is to make all staff members aware of the provisions of the Money Laundering Act. The business procedures focus on
- verifying a customer's true identity
- gather information on the scope and purpose of the customer-bank relationship
- pay attention to all non typical transactions
- identifying suspicious transactions
- informing the police if suspicion proves well-founded
The Group's business procedures deal with requirements for proof of identity, suspicious actions, investigation, reporting and measures to prevent financing of terrorism.
Preventing financing of terrorismThe measures taken to prevent money laundering are equally relevant in preventing the financing of terrorism. In both cases, it is essential to know one's customers and understand their transactions.
A number of transactions should in themselves arouse suspicion, and specific persons and organisations should make the banks suspicious and prompt further investigation.
The Danske Bank Group works with the authorities to prevent the financing of terrorism and has prepared business procedures to this end.