The Money Laundering Act

As a real estate agent we are covered by Section 1, subsection of The Money Laundering Act. 1, No. 16:

"Real estate agents and real estate brokerage companies, including when they act as intermediaries in connection with the letting of real estate."

The Danish Money Laundering Act is an implementation of the EU's 4th and 5th Money Laundering Directive from 2015 in consultation with a number of international recommendations.

The Money Laundering Act defines that money laundering means:

  • Unauthorizedly receiving or obtaining for oneself or others a share in financial benefits obtained through a criminal offence
  • Unauthorized concealing, storing, transporting, assisting in the disposal or in any other way subsequently helping to secure the financial proceeds or funds from a criminal offense
  • Attempt or complicity in such dispositions

Examination and Listing Obligation

It appears from Section 25 of the Act that companies covered by the Act must investigate the background and purpose of all complex and unusually large transactions, as well as all unusual transaction patterns and activities that do not have a clear economic or demonstrably legal purpose, with a view to establishing, whether there is suspicion or reasonable grounds to suspect that these are or have been connected to money laundering or the financing of terrorism. The Money Laundering Act contains a prohibition against all traders who are not covered by the Money Laundering Act receiving cash payments of DKK 50,000 or more, whether the payment is made at once or as several payments that appear to be interconnected.

Identity Information

GCR, as covered by the Money Laundering Act, is obliged to obtain identity information on natural and/or legal persons when entering into all new customer relationships. As part of the customer due diligence procedure, all customers must be identified and customers' identities must be verified on the basis of documents obtained from reliable and independent sources.

  • In the case of natural persons identity information consisting of the person's name and CPR number is obtained. (or other identification number if the customer does not have a danish CPR number). Does the person in question not have a CPR no. or similar, the identity information must include date of birth. It is basically the customer who must supply the identification information.
  • In the case of legal entities identity information consisting of CVR no. is obtained, and the information is checked with identification documents or via the CVR register. The ownership structure must also be clarified and the real owners of the company must be identified with a CPR number, which we must keep for 5 years.

If you have any questions, you can contact us.