Who Is Covered by the Anti-Money Laundering Act?
Who Is Covered by the Anti-Money Laundering Act?
"Do I really need to follow the AML Act?" The question pops up in everything from small bookkeeping businesses to large tech companies. The answer often surprises many: Yes, probably. The AML Act has an impressive reach, and you may be covered without knowing it.
Let's cut through the confusion and see exactly who must follow the law - and just as importantly, who doesn't.
The Obvious Ones: Financial Sector
No surprises here. These are covered by definition:
Banks and Savings Banks
- All financial institutions with Danish license
- Branches of foreign banks
- Even small cooperative banks
Insurance and Pension
- Life insurance companies
- Pension funds
- Insurance brokers (for life insurance)
Investment Area
- Securities dealers
- Investment management companies
- Managers of alternative investment funds
Other Financial Actors
- Mortgage credit institutions
- Payment institutions
- E-money institutions
- Currency exchange businesses
The Professional Advisors
Here's where many start getting surprised:
Accountants and Bookkeepers
Covered when they:
- Provide tax advice
- Assist with business establishment
- Help with buying/selling companies
- Manage client funds
NOT covered for:
- Pure bookkeeping without advisory
- Preparing annual accounts without audit
- General accounting assistance
Lawyers
Covered when they:
- Advise on real estate transactions
- Assist with business transactions
- Manage client accounts
- Help with business establishment
NOT covered for:
- Litigation
- Legal advice on rights/obligations
- Criminal defense
Real Estate Agents
Always covered for:
- Purchase and sale of real estate
- Rentals with deposits over 1 month's rent
- Commercial properties
The Less Obvious
Gaming Industry
- Casinos (online and physical)
- Online gaming with prizes
- Betting
- Lotteries over certain size
Bookkeepers (yes, again!)
Many think they're exempt, but if you as a bookkeeper:
- Say "you can save tax by..."
- Suggest "this deduction option..."
- Advise on VAT optimization
...then you're covered!
Business Services
Covered:
- Company administration
- Provision of registered office
- Nominee services
- Trust management
Dealers
Covered for:
- Cash sales over 10,000 DKK
- Trading in:
- Art
- Antiques
- Precious metals
- Precious stones
Surprising Exceptions
These are NOT covered (unless they do other things):
Regular Retail
- Supermarkets (under cash limit)
- Clothing stores
- Restaurants
- Hairdressers
Consultants
- Management consultants
- IT consultants (without payment handling)
- HR consultants
- Marketing agencies
Other Services
- Cleaning companies
- Craftsmen
- Transport companies
- Educational institutions
Borderline Cases Creating Confusion
IT Companies
Covered if:
- Develop payment systems
- Handle customer payments
- Offer crypto services
Not covered if:
- Only develop software
- Hosting without payment handling
- Pure technical support
Import/Export
Covered if:
- Trade in high-risk goods
- Receive cash payments over 10,000 DKK
Not covered if:
- Normal trade with invoicing
- B2B without cash
Consulting
Covered if:
- Tax optimization included
- Assistance with business acquisitions
- Act as intermediary in transactions
Not covered if:
- Pure business advisory
- Strategy development
- Process optimization
How Do You Know If You're Covered?
Ask yourself these questions:
- Do I handle other people's money? Yes = Probably covered
- Do I advise on tax or business structure? Yes = Covered
- Do I accept cash over 10,000 DKK? Yes = Covered
- Am I in the financial sector? Yes = Definitely covered
- Do I help with real estate transactions? Yes = Covered
Consequences of Being Covered
If you ARE covered, you must:
- Risk assess your business
- Have written policies
- Know your customers (KYC)
- Monitor transactions
- Report suspicions
- Keep documentation for 5 years
If you're NOT covered:
- No formal requirements
- But still be aware
- Consider voluntary compliance
- Prepare for future changes
When the Law Expands
The AML Act expands regularly. Recent additions:
- Crypto businesses
- Crowdfunding platforms
- Certain art galleries
Coming focus:
- Larger tech companies
- New payment methods
- Virtual services
The Safe Choice
In doubt? Here's the rule of thumb:
- If you think "maybe" = you're probably covered
- If customers ask for "creative solutions" = you're covered
- If you handle money/values = investigate thoroughly
Get Help for Clarification
Still unsure?
- Contact your trade organization
- Ask your accountant
- Read Financial Supervisory Authority guidance
- Seek legal assistance
Because the price of being wrong - fines from 10,000 DKK to millions - is rarely worth the risk.
The AML Act is like a safety net: It catches many, but it's to protect everyone. So spend time understanding if you're in the net. Better to know now than discover it when inspection knocks.
