Money Laundering with Focus on Investment Companies

Emel Keles & Jamal Oliver Naveed Janjooa

Student thesis: Master thesis

Abstract

Denmark and the rest of the world has a lot of focus on money laundering and are trying to minimize it with different initiatives. The initiatives change a lot and a lot more rules are made or amended. This is due to people finding new ways to money launder; therefore, the rules need to be up to date. However, some companies are not able to follow the rules and are struggling with the different initiatives. The purpose of the thesis is to highlight the difficulties investment companies are currently undergoing trying to fulfil the requirements in the money laundering law and the national risk assessment report. The thesis will focus on the Danish money laundering act, and the Danish investment companies and how these and difficulties to fulfil the requirements. The thesis will also focus on the Danish Financial Supervisory Authority and the guidance to the Danish money laundering act prepared by the Danish Financial Supervisory Authority.
To complete and answer the questions in the thesis, there has been used two methodological tools to provide data. There has been primary data used, such as a semi structured interview and a questionnaire survey. One interview has been conducted with an investment company, with the money laundering officer and the compliance officer. Both have a lot of experience and have worked with money laundering for numerous years. The money laundering officer also sits on a board with people from banks, accounting firms, lawyer firms and credit institutions, where they discuss different challenges and use a lot of time discussing money laundering within the different industries. The questionnaire survey received 23 respondents, which consists of other investments companies who have a money laundering officer. The primary data is corroborated by secondary data which consists of responses between the Danish Financial Supervisory Authority and the investment association. The secondary data also consists of remarks to the money laundering law from the investment’s association, articles on money laundering, information from the Danish statistics and information produced by Finance Denmark. Lastly, the secondary data also consists of reports from Danish Financial Supervisory Authority on 3 investment companies and the remarks they got from them regarding there processes on money laundering.
The analysis examines the challenges with the money laundering law as it is right now. The challenges make it hard for investment companies to follow the rules, but in the end it is manageable. The different challenges are explained in detail and why these challenges create problems for investment companies.
The discussion section talks about the different challenges and what perspective the Danish Financial Supervisory Authority might have on this and if the challenges are easy to overcome.
Initially, it is concluded that the challenges may be too much for the investment companies to handle. In order for them to handle it, new systems may be needed where the different industries work together of changes in the current money laundering law. This means politicians would have to get involved and help find a solution so that the investment and other industries can be more efficient in fighting money laundering.

EducationsMSc in Auditing, (Graduate Programme) Final Thesis
LanguageDanish
Publication date2020
Number of pages199