Denmark Country Summary

FATF Status

Denmark is not on the FATF List of Countries that have been identified as having strategic AML deficiencies

Compliance with FATF Recommendations

The latest follow up to the Mutual Evaluation Report relating to the implementation of anti-money laundering and counter-terrorist financing standards in Denmark was undertaken in February 2021. According to that Evaluation, Denmark was deemed Compliant for 6 and Largely Compliant for 32 of the FATF 40 Recommendations. It was deemed Highly Effective for 0 and Substantially Effective for 3 of the Effectiveness & Technical Compliance ratings.

Denmark is recognized for its low levels of corruption and a strong legal framework that effectively combats various forms of crime, including human trafficking, drug trafficking, and financial offenses. Despite these strengths, the country faces challenges related to foreign bribery, as recent reports indicate insufficient prioritization in preventing and penalizing such activities, highlighting a need for enhanced awareness and resources to address vulnerabilities in this area.

Denmark is widely recognized as a highly attractive business environment, characterized by political, economic, and regulatory stability, and is a member of the European Union, adhering to its standards. The Danish economy is robust, with exports constituting approximately 70% of GDP, and it excels in green technology, shipping, and life sciences, while facing challenges such as labor shortages and geopolitical uncertainties. The investment climate is favorable, supported by transparent regulations and a strong legal framework, although recent legislation has introduced a foreign investment screening mechanism for specific high-risk sectors to safeguard national security.