HomeDanish PoliticsDanish government strengthens anti-money laundering efforts through client accounts

Danish government strengthens anti-money laundering efforts through client accounts

The government intensifies efforts against money laundering via client accounts. The government has announced plans for a new bill that will strengthen control over money laundering through client accounts. Justice Minister Peter Hummelgaard (Social Democrats) announced at a press conference on Monday that the bill will be introduced after the summer holidays. The initiative comes in the wake of a documentary on TV 2 called “The Black Swan,” which exposed collusion in fraud between criminals, lawyers, and business people. Hummelgaard highlighted that the government will also examine the rules for trustees. The current system allows for the appointment of one’s own trustee in bankruptcy cases for a fee, and this is an area where the minister already promises changes. The government will also look at the rules for client accounts and self-nomination of trustees. However, no specific details about the planned changes were provided.

The background for the initiative is a meeting that the government held on Monday with all parties in the Folketing (Danish Parliament). The documentary “The Black Swan” has shown how client accounts, which are attorney accounts with entrusted funds from clients, are being misused, creating an urgent need for stricter regulations. One of the main desires of the Socialist People’s Party is to expedite negotiations on a new police agreement, but this is not currently on the agenda according to Hummelgaard. “We don’t have plans for that at present. But we won’t rule anything out,” he states. Economy Minister Morten Bødskov (Social Democrats) adds that digitization is a key factor in combating money laundering. He emphasizes that there is an extensive digitization of communication between authorities, citizens, and businesses taking place. “We have new legislation being rolled out now, concerning financial statements. In the past, they were often burned or flushed down the toilet. Now there is a requirement for them to be digital,” Bødskov says.

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