Denmark: Financial System Stability Assessment with reports on - IMF

63negligible. Authorities recognize that even the relatively low level of organized crime cangenerate significant proceeds, but there are no accurate estimates of the amounts involvedand authorities believe that in most cases, the proceeds of crime are transferred elsewhere.10. FT poses some material risk <strong>with</strong>in <strong>Denmark</strong> and has been the subject of a fewprosecutions. Danish society contains elements which sympathize or have relations <strong>with</strong>groups or organizations involved in terrorist activities, which creates potential for recruitmentand fundraising for terrorist purposes. Various contact groups and outreach efforts have beenundertaken to deal <strong>with</strong> these issues.11. The Danish financial sector is deep (total assets close to five times GDP),sophisticated and dominated by the banking sector. <strong>Denmark</strong>’s new AML/CFT law coversabout 4800 lawyers, 2700 accountants/auditors, 2700 real estate agents, and 6 casinos.Company services are generally supplied by lawyers. Rather than making its 650 dealers inprecious metals and stones reporting entities, <strong>Denmark</strong> instead outlaws all cash transactionsabove DKK 100,000 (€13,410) 38 for all forms of business.12. ML is criminalized through a money receiving offense which covers the conduct setforth in the applicable conventions. It extends to the proceeds from any crime committedintentionally. Grossly negligent acquisition or receipt of proceeds through an offense is alsosubject to criminal sanctions. Laundering of one’s own proceeds is not actionable unlessproceedings against the person for the predicate crime are not successful. ML is punished bya fine, and/or for the basic offense imprisonment of up to 18 months and for the aggravatedoffence up to six years. The imprisonment penalty for the basic offense is less than in manycountries. Penalties imposed have been relatively low. Legal persons have criminal liability.Provisions in the Faroe Islands and Greenland do not extend to all necessary predicatecrimes.13. The criminalization of FT in <strong>Denmark</strong> is consistent <strong>with</strong> international standards, butthe Faroe Islands and Greenland, which rely on complicity in the commission of concreteterrorist acts, have not yet enacted specific provisions criminalizing the financing of terroristacts, terrorists and terrorist organizations. Danish authorities have pursued FT investigationsand prosecutions and a couple of cases are pending in the courts.14. A comprehensive, flexible confiscation framework includes traditional convictionbasedconfiscation, preventive confiscation, and can require a defendant to prove the legalorigin of assets in some instances. Law enforcement has tools to identify, trace and seizecriminal and terrorist assets. Statistics do not yet illustrate the efficiency of the system inplace. Provisions in the Faroe Islands and Greenland are being updated.38 Exchange rate taken from the <strong>Financial</strong> Times as of May 9, 2006.