Danish FSA orders PFA to take action after money laundering probe

The Danish Financial Supervisory Authority (FSA) has ordered Danish pension fund PFA to take action following an inspection in relation to money laundering.

The inspection, which was undertaken in May 2021, focused on the company’s policies, procedures, internal controls and customer awareness procedures in relation to money laundering.

Although the FSA found that the company’s risk of being used for money laundering or terrorist financing is low compared to other financial companies in Denmark, it does also offer medium-risk products such as section 53 schemes.

As a result, the FSA found that supervisory action needs to be taken and PFA has been ordered to obtain identity information on all customers. In doing so, PFA must ensure that it can adequately determine whether the customer is a politically exposed person, or a close collaborator of a politically exposed person.

PFA has also been instructed to check customers' identity information using documents, data or information that it has obtained from a reliable and independent source. This should be done on the establishment of the customer relationship or immediately after.

In addition, the company has been instructed to submit a plan for how it will update its customer knowledge information, in accordance with the Money Laundering Act. The company has also been instructed to investigate suspicious transactions, including recording and storing the results of these investigations and ensuring that this can be proven to the Danish FSA.

Commenting, PFA director of customer and pension services, Nina Groth, said: “In general, the detailed review carried out by the Danish Financial Supervisory Authority in PFA shows that we handle the obligations that follow from money laundering legislation very well and that we follow the guidelines in the area of money laundering.

“PFA takes its social responsibility to prevent money laundering and terrorist financing very seriously, and therefore we naturally take note of the decision from the Danish Financial Supervisory Authority and ensure that the orders given by the Danish Financial Supervisory Authority are followed up. It is a work that is already underway, which we have moved forward with since the Danish Financial Supervisory Authority's inspection in May this year.”

PFA has been instructed to prepare a statement and document how PFA has complied with the Danish FSA's injunctions. This must be done within three months.

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