Preparing for the Danish Business Authority's Inspection
Preparing for the Danish Business Authority's Inspection
"They're coming next week." The words from the Danish Business Authority make even experienced accountants break out in sweat. But inspection doesn't have to be a nightmare. With proper preparation, it can actually become a positive experience - yes, you read that right.
Let's go through exactly what awaits you and how to prepare so the inspection becomes a validation of your good work rather than a stressful exam.
Why Are They Actually Coming?
The Danish Business Authority conducts inspections for two reasons:
- Risk-based selection: Your company fits their focus areas
- Random sampling: Randomly selected to ensure general compliance
Important point: An inspection does NOT mean they suspect you of anything. See it as a vehicle inspection - everyone must go through it regularly.
What Do They Look At?
The inspection typically focuses on five main areas:
1. Your AML Policy
- Do you have one? (You MUST have one)
- Is it updated?
- Does it fit your business?
- Do you follow it in practice?
2. Risk Assessment
- Have you assessed your own business risk?
- Are your clients' risks assessed individually?
- Does your effort match the risk?
3. Customer Due Diligence Procedures
- Samples of client files
- Is identification sufficient?
- Is beneficial ownership mapped?
- Do you understand customer's business?
4. Ongoing Monitoring
- How do you watch for changes?
- Frequency of reviews?
- Documentation of updates?
5. Internal Control and Training
- Are employees trained?
- Do procedures exist?
- How is quality ensured?
4 Weeks Before: Start Preparation
Week 1: The Major Service Check
Review your AML policy
- Is it from 2019? Update NOW
- Does it match your current practice?
- Does it cover all required areas?
Check your procedures
- Print your checklists
- Are they current?
- Do employees use them?
Week 2: Client Review
Do self-sampling
- Take 20 random client cases
- Review as if you were the inspection
- Note deficiencies - and fix them!
Focus on high-risk clients
- Is documentation extra thorough?
- Can you explain your assessments?
Week 3: Documentation and Evidence
Organize electronic archive
- One folder per client
- Uniform naming
- Everything easily accessible
Prepare overviews
- List of all clients with risk category
- Log of training activities
- Overview of reports (if any)
Week 4: The Dress Rehearsal
Brief your team
- Everyone must know procedures
- Practice typical questions
- Appoint one contact person for inspection
Prepare the room
- Quiet meeting room
- Computer/projector ready
- Folders organized if physical archive
On the Day: How to Handle the Visit
Reception (first impressions count)
- Be welcoming and professional
- Offer coffee and practical facilities
- Show you're in control
Opening Round
Inspection typically starts with:
- Presentation of purpose
- Review of program
- Opportunity for questions
Pro tip: Be open and honest from start. Say if you've identified improvement areas.
During Review
DO's:
- Answer precisely what's asked
- Show documentation promptly
- Admit if something's missing
- Take notes for improvements
DON'Ts:
- Don't over-inform
- Don't discuss law interpretation
- Don't hide deficiencies
- Don't get defensive
Typical Questions (and Good Answers)
"How do you risk assess customers?" Good answer: "We use this model [show checklist] with these criteria. Let me show an anonymized example."
"How do you ensure ongoing monitoring?" Good answer: "All clients reviewed annually in January. High-risk quarterly. Here's our log."
"What if employee discovers suspicious activity?" Good answer: "They follow this procedure [show document]. We've trained this scenario [show training log]."
After Inspection: Follow-up
Immediately After
- Send thanks for visit
- If promised material: Send within 24 hours
- Internal debrief with team
The Inspection Report
Typically comes after 2-4 weeks and contains:
- Observations
- Orders (if any)
- Recommendations
- Deadline for action
Handling Orders
If you get orders:
- Accept professionally - discussion rarely helps
- Make action plan - show you take it seriously
- Implement quickly - never exceed deadlines
- Document changes - show compliance
The Secret Ingredient: Attitude
Inspectors aren't enemies. They are:
- Professionals doing their job
- Interested in compliance, not punishment
- Often helpful with interpretations
- People who appreciate professionalism
Meet them with openness and willingness to improve, and it almost always goes well.
When Things Go Wrong
Worst scenarios and handling:
"We have no AML policy" Admit, show improvement willingness, implement ASAP.
"Documentation missing on many clients" Make plan for collection, prioritize high-risk.
"Employees don't know procedures" Book training immediately, show it's taken seriously.
Inspection as Improvement Catalyst
The best companies see inspection as:
- Free consulting visit
- Learning opportunity
- Validation of good practice
- Motivation for updates
With proper preparation, inspection goes from stressful exam to valuable feedback session.
So next time the phone rings with inspection notice? Smile, thank for the warning, and start preparing. You've got this.
