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 as one of the least corrupt countries globally, with robust laws against bribery and corruption enforced by the Ministry of Justice. However, the OECD Working Group on Bribery has raised concerns about Denmark's insufficient prioritization of preventing and penalizing foreign bribery, highlighting a lack of resources and awareness regarding foreign bribery risks. Despite achieving its first foreign bribery conviction in 2019, the country faces challenges in effectively detecting and investigating such cases, prompting recommendations for a comprehensive national strategy to combat foreign bribery.

Denmark is recognized as one of the world's most attractive business environments, characterized by political, economic, and regulatory stability. The economy is heavily trade-driven, with exports accounting for about 70 percent of GDP, and it is a leader in green technology and industries such as shipping and life sciences. Despite facing challenges like labor shortages and economic uncertainty due to geopolitical factors, Denmark's macroeconomic conditions remain stable, with projected GDP growth of 2.7 percent in 2024.

Denmark is recognized as one of the most attractive business environments globally, ranking highly in political, economic, and regulatory stability. The investment climate is sound, supported by a stable macroeconomic environment and a strong emphasis on foreign direct investment, particularly in sectors like clean technology and life sciences. Despite challenges such as labor shortages, Denmark's transparent regulatory framework and commitment to liberal trade policies enhance its appeal to investors.