In the report, which is based on statements from eight Danish banks, the Danish FSA writes that: ”Today, it is not possible to run a healthy and robust bank unless the management of the bank has adequate focus on the regulations in the Money Laundering Act. In the assessment of the Danish FSA, this obligation is not being observed to a sufficient degree”.
In relation to its status report from June 2016, the Danish FSA is still of the opinion that the issue concerning possible tax evasion by bank customers mainly concerns non-Danish private-banking customers.
In connection with preparing the report, the Danish FSA has gained insight into the nature of the comprehensive data material from the leaked Panama Papers, which SKAT, the Danish Customs and Tax Administration, has purchased. Based on information from SKAT, the Danish FSA considers that the acquired information does not directly disclose new knowledge about the involvement of Danish banks in cases concerning possible tax evasion.
According to information from the banks themselves, they have not advised on tax issues or offshore company structures. Instead, they have referred their customers to seek advice from tax advisors. However, the banks do not describe how they have dealt with customers’ requests to open accounts in tax-haven countries or to set up offshore companies. All else being equal, such requests are suspicious with respect to tax evasion, according to the Danish FSA.
After the first report, two banks identified more customer relationships with links to the Mossack Fonseca law firm than originally stated. However, this does not change the view of the Danish FSA that banks have increased their focus on avoiding involvement in possible tax evasion during the 10-year period covered by the report, even though problematic cases have also occurred in recent years.
Furthermore, the Danish FSA concludes that banks generally have more focus on preventing money laundering.
Inspections
Some of the issues described in the report have already been the subject of supervisory reactions. With respect to additional matters, the Danish FSA will select some of the respondent banks for future inspections in the area of money laundering.
If new information becomes available concerning the involvement of Danish banks in tax evasion by their customers, the Danish FSA will assess whether such information should give rise to new supervision activities.
Supervision of bank measures to prevent money laundering
The report on the Panama Papers only comprises supervision and conclusions by the Danish FSA on the basis of the media coverage of leaked documents from Mossack Fonseca as well as thematically related subjects.
Furthermore, the Danish FSA continuously receives information about possible bank involvement in money laundering cases. Such information is included in ongoing money laundering supervision activities and prioritisation of inspections etc.
The report was originally published in Danish 14 March 2017.
Read the report here (pdf)
Contact person: Director Louise Buchter, Governance, Anti-money Laudering and Payment Services Division
Direct telephone: +45 33 55 84 50
E-mail: lbu@ftnet.dk