Fighting money laundering: New report points to changes

The outline for a more effective approach to combating money laundering will be unveiled on Wednesday at CBS when Associate Professor Kalle Johannes Rose presents the findings of the first joint report, which incorporates all the different sectors involved in anti-money laundering efforts.

We need central coordination

- Kalle Johannes Rose, Associate Professor

“The main conclusion is probably that Denmark needs central coordination,” says Kalle Johannes Rose, who has a background in the Danish Financial Supervisory Authority (Finanstilsynet).

“There are a lot of people working to address financial crime. In addition to various public authorities, around 15,000 companies in the private sector are required to register," he adds.

“These companies must monitor suspicious behaviour from their customers and collaborate with the authorities to combat money laundering, but no one knows whether the auditor, the lawyer or the tax authority have the same approach or risk assessment because no one is responsible for coordinating the efforts,” Kalle Johannes Rose points out.

A need for a Danish perspective

The almost 100-page report to be presented on Wednesday includes 13 different conclusions and was developed following a two-day conference at CBS earlier this year where the goal was to identify the most pressing issues and develop concrete initiatives to make the fight against financial crime more effective.

According to an estimate from the Danish Money Laundering Secretariat, criminals launder around DKK 68 billion annually in Denmark. The actual figure is likely even higher, but now invoice fraud, VAT avoidance and shady money flows between the criminal underworld and the respectable upper world are set to become more difficult.

“Researchers can provide a steady stream of research-based knowledge and analyses with a Danish perspective, benefiting other parts of society. We are currently relying on international guidelines, but they are not always relevant,” says the CBS researcher, mentioning, as an example, that the UN once issued general guidelines related to rhino horn trade.

“Our report shows that there needs to be a much clearer definition of the various responsibilities that exist in the fight against money laundering,” emphasises Kalle Johannes Rose, who hopes that authorities, decision-makers and companies will embrace the findings of the report. 

The event takes place on Wednesday 11 December, 13:00 at Solbjerg Plads, Frederiksberg. Please register no later than Tuesday on: https://cbs.nemtilmeld.dk/1107/