Last week a new law, the 5th Money Laundering Directive, was put into place in Denmark.

The law amends the Money Laundering Act and the Financial Business Act. It works as a preventive measure against the use of the financial system for money laundering or terrorist financing.

As of January 10, 2020, capital companies must:

• Obtain, store and document identification data on their real owners
• Update the information at least once a year
• Be able to document all attempts to obtain identification
• Keep the information for five years after people cease to be active in the company

The new rules affect most companies, foundations, associations, etc. in Denmark. The exception is listed companies, which are already subject to strict documentation regulations, as well as single-person companies where the ownership relationship is obvious.

How does NewBanking solve the regulatory challenges facing this new law?

NewBanking’s platform makes it easier for businesses to comply with the new legislation. Companies including the law firms Bech-Bruun and Plesner, Danske Spil and the shipping company DFDS are currently using the NewBanking system.

Using the NewBanking Identity platform ensures that the collection, verification and retention of information about your business will be done in a simple and very secure way. Personal information is submitted directly to NewBanking via a simple flow on the company’s website. The system verifies and documents all data, and you get all information about the company and its ownership in one safe place. Documentation of compliance with legislation (as well as history for previous years) will now be centrally secured and can be presented on request to auditors and/or authorities.

Attorney, accountant or adviser?

Want to help your customers share information securely? With NewBanking Identity, you can keep track of all the sensitive and confidential personal information of your customers and onboard them with verified data.

Contact us to find out more about how your company can implement these new regulations using the NewBanking platform.