Money Laundering

Amanda Krautwald Vestergaard Olsen

Student thesis: Master thesis

Abstract

This master’s thesis will analyze both the German and the Danish definition of the customer concept and the transaction concept, and what this means for the Danish banks. First the Danish and the German definition of the customer concept and the transaction concept will be analyzed, and there after they will be compared, in order to evaluate how these definitions, affect the Danish banks with branches in Germany. The master thesis will be using the Danish anti money laundering law, bill L41 and the Danish Financial Supervisory Authority’s guidance as well as the German anti money laundering law GwG, the German bill GwG-entwurf and the German anti money laundering guidance. The thesis concludes that there is a big difference between the Danish and the German definitions. These big differences between two countries’ definitions means that the Danish banks, with branches in Germany, have a hard time knowing, when they perform customer due diligence, and when they commit an offense. The transaction costs connected to the customer due diligence, of the Danish banks, with branches in Germany, will be analyzed next, as well as which incentives these transaction costs give the Danish banks. The transaction cost analysis is used to analyze the different transaction costs that are connected to the customer due diligence. It was concluded that the customer due diligence, as one big transaction cost, is the most profitable, if performed internally in the bank. Furthermore, the probability function will be used to shine some light upon the incentives the Danish banks have connected to the transaction cost. In the last chapter, the legal and the economic analyst are connected in an integrated law and economy analysis. There will be an analysis of which incentives at the Danish banks that are the most community efficient. In this analysis the project will be using the Gary S. Becker’s theory on the society’s total damage. The thesis came to the conclusion that the most community efficient incentive, is to perform the customer due diligence. In addition, two solutions were found, in order to change the other two incentives; not to perform the due diligence and to overcomply the due diligence. The solutions are to raise the level of fines as well as the German definitions needs to be more detailed. Therefore, the thesis concludes that the big difference between the Danish and the German definitions of the customer concept and transaction concept, have several incentives connected to the customer due diligence, and by looking at the society’s welfare, the most community efficient incentive at the Danish banks, is to perform the customer due diligence.

EducationsMSc in Commercial Law, (Graduate Programme) Final Thesis
LanguageDanish
Publication date2019
Number of pages75