Notice On What Physical And Legal Persons As Well As Products That Can Be Exempted From The Law On Prevention Of The Laundering Of Proceeds And The Financing Of Terrorism, As Well As The Definition Of Politically Exposed Persons

Original Language Title: Bekendtgørelse om hvilke fysiske og juridiske personer samt produkter, der kan undtages fra lov om forebyggende foranstaltninger mod hvidvask af udbytte og finansiering af terrorisme, samt definitionen af politisk udsatte personer

Subscribe to a Global-Regulation Premium Membership Today!

Key Benefits:

Subscribe Now

Read the untranslated law here: https://www.retsinformation.dk/Forms/R0710.aspx?id=120570

Notice on what physical and legal persons as well as products that can be exempted from the law on prevention of the laundering of proceeds and the financing of terrorism, as well as the definition of politically exposed persons 1)

Under section 1, paragraph 2, § 3, paragraph 2, article 20, paragraph 3, article 21, paragraph 4, and section 37, paragraph 3, of the law on prevention of the laundering of proceeds and the financing of terrorism, referred to in article 6. lovbekendtgørelse nr. 442 of 11. in May 2007, as amended by § 10 of lov nr. 517 of 17. June 2008, fixed:

Simplified customer due diligence

§ 1. Public authorities or public bodies are not subject to the due diligence procedure in accordance with article 12, paragraphs 1 to 3, of the law on prevention of the laundering of proceeds and the financing of terrorism, if the following conditions are met:





1) Customer shall exercise public functions in accordance with the Treaty on European Union, the Treaty establishing the European Community or the secondary Community legislation.

2) the customer's identity is publicly available, transparent and can be determined with certainty.

3) customer's activities and accounting policies are transparent.

4) the customer is accountable to a Community institution or a Member State's authorities, or subject to appropriate control procedures, ensuring control of the customer's activities.





(2). There must in all cases be obtained sufficient information to determine that the customer is covered by paragraph 1.

(3). To be always required identification and storage thereof, see. §§ 12, 19 and 23 of the law on prevention of the laundering of proceeds and the financing of terrorism, when there is a suspicion that the transaction is related to money laundering or the financing of terrorism, which is governed by section 7 of this Act. If the suspicion cannot be rebutted, there must be notification pursuant to section 7 of the law on prevention of the laundering of proceeds and the financing of terrorism.

§ 2. Products and transactions related to the product are not covered by the due diligence procedure in accordance with article 12, paragraphs 1-3 and § 19 (2) of the law on prevention of the laundering of proceeds and the financing of terrorism, if they meet the following conditions:





1) Product is based on a contract basis, in writing, on paper or another durable medium.

2) transactions relating thereto be implemented via the customer's account





(a)) in a credit institution, without prejudice. § 5 (1) (8). 2, in the financial business Act,

(b)) in a foreign credit institution covered by 3. the money laundering directive,

(c)) or with a credit institution in a country outside the European Union, which imposes requirements equivalent to the requirements of that directive.





3) Customer of the product or of the transaction related to the product should not be anonymous.

4) Product or transaction may not exceed an amount of EUR 15,000, regardless of whether the transaction is carried out as one or several interrelated transactions. If the ownership of the product is first transferred to the customer by kontraktsforholdets expired, the annual benefit maximum of 15,000 euro.

5) third parties may not be able to take advantage of the product, or the transaction, except in the case of death, disablement, survival until a predetermined advanced age or similar events.





(2). For products or transactions related to the product, which invested funds in financial assets or claims, including any insurance or other types of conditional requirements apply in addition to the conditions laid down in paragraph 1, the following requirements:





1) benefits of product or transaction in relation to the product may only be realized in the long term.

2) the product or related transactions cannot be used as collateral.

3) must not be expedited payments or use buy-back clauses.

4) contractual relationship must not be terminated before the expiry of the contractual relationship.





(3). The threshold referred to in paragraph 1, no. 4 shall not apply to the cases covered by article 20 of the law on prevention of the laundering of proceeds and the financing of terrorism.

(4). To be always required identification and storage thereof, see. §§ 12, 19 and 23 of the law on prevention of the laundering of proceeds and the financing of terrorism, when there is a suspicion that the transaction is related to money laundering or the financing of terrorism, which is governed by section 7 of this Act.

Financial activity on an occasional or very limited basis

§ 3. Legal or natural persons are exempt from the law on prevention of the laundering of proceeds and the financing of terrorism, where they engage in a financial activity





1) does not exceed 1000 euro per customer, regardless of whether the transaction is carried out as one or more consecutive transactions,

2) does not exceed 5 per cent of the corresponding legal or natural person's total turnover per year,

3) is a complementary activity and has direct connection with the main activity,

4) only offered for main activity's customers and not to the general public, and if

5) main activity is not covered by section 1 of the law on prevention of the laundering of proceeds and the financing of terrorism.





(2). Paragraph 1 shall not apply to financial activities outside Denmark.

(3). Paragraph 1 shall not apply to the money transfer company, see. Annex 1, point 1. 4 of the law on prevention of the laundering of proceeds and the financing of terrorism.

(4). There must, however, always required identification and storage thereof, see. §§ 12, 19 and 23 of the law on prevention of the laundering of proceeds and the financing of terrorism, when there is a suspicion that the transaction is related to money laundering or the financing of terrorism, which is governed by section 7 of this Act.

Definition of politically exposed persons

§ 4. Politically exposed persons in section 3 (1) (8). 6 of the basic regulation. section 19, paragraph 4, of the law on prevention of the laundering of proceeds and the financing of terrorism, must be understood in accordance with the definitions laid down in paragraphs 2 to 4.

(2). By politically exposed persons who have or have had a prominent public profession, shall mean:





1) heads of State, heads of Government, Ministers and Deputy Ministers or Deputy Ministers.

2) members.

3) Supreme Court justices, members of the constitutional courts and of other high-level courts, whose decisions are subject to further review only in exceptional circumstances.

4) Members of courts of Auditors and of the boards of central banks.

5) Ambassadors, chargés d'affaires and high-ranking officers in the armed forces.

6) Members of State-owned companies ' administrative, managerial or supervisory bodies.





(3). By immediate family members shall mean:





1) spouses.

2) Registered partners.

3) in nr. 1 and 2 shall be persons children.

4) in nr. 1 and 2 shall be persons parents.





(4). By close collaborators shall mean:





1) persons who have the ownership rights of legal entities and legal arrangements or otherwise has close business ties with one of the persons included in paragraph 2.

2) persons who have ownership of a legal entity or a legal arrangement, which is created for the benefit of one of the persons included in paragraph 2.





(5). The persons referred to in paragraph 2 does not include officials at the medium level or lower level.

(6). If one of the persons referred to in paragraph 2 has not had a prominent profession for at least a year, considered this no longer as a politically exposed person.

Penalty

§ 5. Violation of the provisions in § 1, paragraph 3, section 2, paragraph 4, and article 3, paragraph 4, of this Ordinance is punishable by a fine.

(2). That can be imposed on companies, etc. (legal persons) criminal liability in accordance with the provisions of the criminal code 5. Chapter.

Date of entry into force of

§ 6. This Ordinance shall enter into force on the 15. July 2008.

(2). At the same time repealed Executive Order No. 1377 by 10. December 2007 about what physical and legal persons as well as products that can be exempted from the law on prevention of the laundering of proceeds and the financing of terrorism.
The Danish financial supervisory authority, the 1. July 2008 Henrik Bjerre-Nielsen/Stig Nielsen Official notes 1) Ordinance contains provisions implementing parts of Commission Directive 2006/70/EC of 1. August 2006 laying down implementing measures for a European Parliament and Council Directive 2005/60/EC as regards the definition of politically exposed person "and the technical criteria for simplified customer due diligence procedures and for exemption in cases where a financial activity on an occasional or exercised in a very limited way, (the official journal of the European Union 2006 nr. L 214, p. 29).